Accidents and illness can happen at any time.
Income Protection is important as it can provide peace of mind and protect your ability to earn an income should you fall ill or sustain an injury and not be able to work.
Here are our reasons why you should protect your income:
- Provides Peace of Mind for You and Your Family – Should you find yourself in a situation where you are either incapacitated and unable to work, the loss of your income can substantially impact your family’s finances.With income protection you will not have to worry about what it means losing an important income. Your family can continue to be cared for, regardless of the situation.
- Income Protection Provides Ongoing Quality of Life – Income Protection assures that your family’s quality of life can continue.This can include everything from the mortgage, car loan, weekly groceries, petrol, utilities, medical costs, travel and other major expenses. Generally income protection can provide up to 75% of your gross earnings.
- Provides an Opportunity for Recovery – If you are suffering from a major illness or injury, you should be focused on your recovery with rest and recuperation. By having income protection, you can ensure that you can focus on getting better rather than worrying about your finances and having to earn money.
- It Could Happen to Anyone – There are risks everywhere and all your careful planning and decision-making can unfortunately be undone in an instant. Be smart and protect yourself and your family by having income protection.
- Can Provide Extra Protection – Income Protection can supplement other insurance plans. Income Protection can be part of a life insurance package, which could provide extra protection in the case of unforeseen death. Life insurance provides a lump sum benefit in the event you pass away or suffer a terminal illness. Income protection provides an ongoing monthly benefit while you are unable to work for an extended period.Income protection can also be a supplement alongside worker’s compensation cover like WorkCover. Not all workplace injuries are eligible under WorkCover compensation, therefore income protection is an added level of protection.
Remember that premium payments are generally tax deductible if the benefit payment can be assessed as being income for tax purposes. Cover taken out through superannuation may not be tax-deductible.
Income Protection can be a complicated area to navigate – talk to us today about how we can help.
This information is of a general nature only and has been provided without taking account of your objectives, financial situation or needs. Because of this, you should consider whether the information is appropriate in light of your particular objectives, financial situation and needs.