You may be asking yourself why do I require Income Protection insurance and how is it possibly the most important type of insurance you will ever take out?
Income Protection insurance provides a monthly benefit that is paid to the insured person that can be up to 75% of their income if they are not able to work as a result of a trauma, accident or illness. It assists you in continuing to meet your financial obligations when you are unable to work due to an illness or injury therefore putting your mind at ease.
Income protection continues to pay you until you are able to return to work after the nominated waiting period has been served, and if you unable to return then you will be paid up until the age of 65 depending on your occupation and the benefit period you have selected.
The great news is that Income protection is tax deductible.
Main Points to consider as to why you require income protection include:
How much income protection insurance you require is best determined by the salary you want to insure? Income protection usually provides cover of up to 75% of your salary.
You need to determine the expenses you need to continue to meet such as paying the mortgage or rent, repayments on other outstanding debts, providing for your spouse and children and other ongoing day to day living expenses. Remember the point of income protection insurance is to provide you with an ongoing income when you are no longer able to work due to injury or illness and it is also tax deductible.
We offer you a free income protection comparison service to help you select and apply for the right income protection cover by providing you with access to 12 different leading Australian Income Protection insurers.