Are you the sole bread winner in your family? Does your family depend on your earnings to survive and get by? I never gave much thought to these questions when I was younger, and then this past summer I got married. Now we are thinking about having a family in the near future, and with that comes additional financial responsibilities. So within a matter of a few years I have gone from thinking about myself to worrying about an entire family. This is when you need to start asking yourself who will take care of your family should anything happen to you, and how will you financially survive if you become ill, let go, or unable to work for any reason! Australian insurance comparison site Choosi recently launched an advertising campaign that communicates how important precautions such as income insurance can sometimes be overlooked and this should not be the case.
In order to protect your loved ones you should consider income protection insurance. This insurance will provide a safeguard in case you should ever be left unable to work. Likewise, if your employer has financial issues and experiences employee cutbacks then having income protection insurance can make sure you are paid regardless. The benefits are vast and many. You can choose the length of time you want your coverage to be in effect, which can last for 6 months to several years. Also, your premiums could be tax deductible.
There aren’t many restrictions to who can apply and receive these types of benefits. I simply went online to compare policies using a site like Chooi to view the best income protection insurance available. You and your loved ones will be thankful and have the peace of mind knowing that their lifestyles are safe and secure no matter what the future brings. In my opinion it’s always better to be prepared for the worst!
I found that generally speaking, income protection insurance pays out a certain percentage of your annual income when you are unable to work. All insurance policies are different and often you can choose from the following options;
1. The percentage of salary that is paid out. Most policies can offer up to 75% of your regular income and there are different levels of cover to choose from.
2. Waiting time before you are eligible for a payout. This means the minimum period you need to be off work before the policy pays out and can be from 2 weeks to 2 years or sometimeslonger.
3. The benefit period. This is the amount of time your insurance covers you for and this can vary from 6 months up to 5 years.
Your premiums will depend on the cover you choose. But thegood news is that in most cases the premiums are tax-deductible.To find the best value for money policy, you should look to compare income protection insurance through a comparison site.Depending on your situation, if you are self-employed or contracted, the situation can be different. Insurers don’t usually provide cover to individuals without a consistent income – you should speak to an insurance provider that specialises in income protection to see if cover is available for you. Every situation is different, so I’d definitely recommend doing your own comparisons and research to find out the best options for you!