Income protection provides you with ongoing payments when you are unable to work due to sickness or illness. While Worker’s Compensation may also be available to help and possibly your own personal savings, you do need to carefully consider if these options will be enough to fulfil your extending financial commitments.
Your income is one of your greatest financial assets and if the unexpected happens and the flow of income is cut short, you can have peace of mind that income protection can step in and continue to make the financial payments required to meet your daily requirements.
Income protection will generally cover up to 75-80% of your income. In terms of finding the right cover, you do have the ability to choose a standalone policy or a cover through your superannuation.
Both options have their advantages and disadvantages and may suit depending on individual circumstances, so it’s best to discuss these with your financial advisor to determine what works for you and your financial situation.
There is some research to indicate that many Australian’s are currently not insured for income protection and under prepared for any unforeseen circumstances. The question to ask is would you be able to continue to pay the household bills and expenses should you need to stop working for a period of time?
The main concerns with Australian’s considering income protection are costs and payouts. There are many options to choose from in terms of income protection with many being reasonable and relatively inexpensive. There are also certain tax deductible benefits that can be used depending on individual circumstances which can make it even more affordable.
In regards to companies paying out claims, in a recent study completed by ASIC and APRA in 2016 and the first half of 2017 more than 90% of all claims were paid.* This percentage does indicate the majority of claims are successfully paid and what’s more, by ensuring you meet all claim expectations will guarantee timely payouts for any claims lodged.
There are many people who do believe that income protection, is value for money, gives peace of mind and would never be without it.
“It’s really a safety net that’s there in that unexpected circumstance when you need it the most,” says one income protection holder.
Why not get in touch today to discuss in further details the finer points of income protection and how it can help to secure your financial future. We’re also able to review your current policy pricing or default policy you have in Super to make sure you have adequate protection.
We’d love to hear from you.
*source: Insurance Watch.