Six Reasons You Should Invest in Income Protection Insurance

It’s easy to think your income is going to be a permanent fixture in your life – if you’ve got a stable job, why should you worry about losing your stable income, right? Unfortunately, you can’t predict the future. While we all feel invincible, accidents and illnesses can happen. Should you fall ill or sustain a nasty injury, you may find yourself unable to work. We have prepared a simple and convenient list of those 6 things you need to know to understand why it’s important to have Income Protection insurance.

  1. Income Protection guarantees ongoing quality of life

There’s nothing better than having the assurance that your finances will be covered, no matter what happens to you. Income Protection insurance brings you this guarantee: if you suffer a serious illness or injury, you will have financial protection that will keep you afloat until you can get back to work. Income Protection can provide up to 75% of your gross earnings.

  1. It provides peace of mind for you and your family

It’s never easy to raise a family. With a couple of kids, you (and often your partner as well) have to work extra hard to give them a comfortable life. If you find yourself incapacitated and unable to work, that loss of income can substantially impact on your family’s finances. Thanks to Income Protection, you won’t have to worry about the implications of losing an important income. Your family can rest easy that you will all be cared for, regardless of the situation.

  1. It allows you to keep up with repayments

When you’re seriously ill or injured, the last thing you need is to worry about debts. It can be stressful to think about how you’ll cover daily expenses, let alone pay off a mortgage, a car loan or credit card debts. Income Protection can be a great help to people who need to keep up with any debt repayments. By supplying up to 75% of your income, it can ensure your debts will be paid so you can get on with the task of recovery.

  1. It can provide an extra level of protection

Income Protection can be a great supplement to other insurance plans. While it’s important to keep yourself covered in case of an unforeseen death, an Income Protection plan can help keep you covered in case of unforeseen disabilities that could keep you from working and making a consistent income. You can purchase Income Protection insurance as part of a Life Insurance package. Income Protection can also be a valuable supplement alongside a worker’s compensation cover like WorkCover. Not all workplace injuries are eligible for WorkCover compensation (since they have to be a result of the employer’s negligence), so having Income Protection gives you an added level of protection in any event.

  1. Income Protection allows you to focus on recovery and recuperation

Many people at some point in their lives will find themselves needing some rest and recuperation from a serious illness or injury. But without the right protection, they may find themselves unable to put all their effort into getting better. Having to worry about funds is always stressful, not to mention your additional concerns about when you’ll be able to return to work and begin earning money again. An Income Protection policy will help make sure your income doesn’t cease during these trying times so you can focus on the most important task at hand: your recuperation.

  1. It could happen to you!

For many, the biggest hope of their lives is to be able to have the consistent income to provide for themselves and their family well into old age. Unfortunately, not all of you will be able to see that dream come true. It doesn’t matter how much you try to stay healthy and steer clear of danger. While we like to deny it, many things operate outside of our control. There will always be risks you simply can’t avoid. Sometimes, all your careful planning and smart decision-making can be for naught if you don’t have the right protection.

Let us have a look at a real case. Eric, 53, is a self-employed electrician. After more than 30 years as an electrician, Eric’s body had started feeling the wear and tear of his job. He had previously injured his right knee in a serious work accident which he successfully received an Income Protection payout for. In the same incident, his left knee was also injured but an operation wasn’t required at the time. However a few years had passed and the condition had become gradually worse, the ongoing pain and being on his feet all day made work for Eric difficult. His doctor diagnosed that a left knee replacement would be required. As a previous Income Protection claimant, the process was made smoother as approval and payment to Eric could be made without the need for him to produce monthly claim forms and supply other financial information. Eric’s left knee replacement operation was a success. He has been undergoing rehabilitation to help him get back movement in his knee and work towards a full recovery.

Every year, some 55,000 Australians suffer a heart attack and an estimated 128,000 new cases of cancer are expected to be diagnosed this year, with that figure rising to 150,000 by 2020. Do you really want to be caught out? With all the risks out there, it may be a risk not to get Income Protection to protect you and your family in the future. Guarantee your children, your partner, and yourself peace of mind and get a quote with us today. AIIM will recommend the proper insurance policy for you.

 

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