Income protection insurance protects you against the loss of income should you be unable to work in the event of an illness or injury. When illness or an accident strikes, it is beneficial to have a policy in place to protect your livelihood.
Income protection insurance pays you a monthly benefit of up to 80% of your salary. This should allow you to stay on top of living expenses (and keep up with those mortgage repayments) while recovering.
If you’re a young adult in the early stages of your career, income protection insurance may seem like a luxury, not worth the money at this point in your life. After all, you’re young, fit and healthy with no dependents and limited debts attached to your name; what’s the concern?
However, should you endure a burden through illness or injury resulting in a loss of income, the need to rely on family and friends for financial support is not appealing. Nor is the idea of watching your hard earned savings disappear; this is when income protection becomes convenient.
Insurance – it’s cheaper
Due to the fact you are likely fit and healthy, you are deemed a lesser risk to insure meaning premiums are substantially lower than if you required a similar level of cover than that of someone older.
Insurance – it’s cheaper
According to the Australian Taxation Office, you’re able to “claim the cost of premiums you pay for insurance against the loss of your income provided they are not paid by your superannuation fund”.
Assists with rehabilitation costs
Should you require a rehabilitation service due your injury, income protection insurance can assist in covering rehabilitation costs. This will help speed up the recovery process and get you back to the work place quicker.
Not all insurance policies are created equally, and it is important to select a cover that is right for you and your current circumstances in order to meet your unique needs.
