A common misconception about income protection insurance is that it’s
only for high-earners, but this isn’t the case. In reality, no one can afford
to be without this safety net, regardless of the amount of income you earn.
The only things certain in life are death and taxes—or so the famous saying goes. Thankfully, income protection insurance can add a positive guarantee to that list by safeguarding your quality of life, should an unexpected setback strike.
You can’t predict the future, but you can plan for it
Nobody
wants to consider an accident or illness impacting their health suddenly, but
it’s a very real possibility. As well as changing your lifestyle, an unexpected
illness could mean you need to take extended leave from work.
It’s estimated that over 400,000 Australians suffer a heart attack sometime in their lives.iThen there’s over 800,000 people of working age with disability, who were not working in 2015 alone.ii It’s tempting to think that if you lead a healthy lifestyle and make smart choices, you’ll be fine. But the reality is you can’t predict the future, you can only plan for it.
It’s estimated that over 400,000 Australians suffer a heart attack sometime in their lives.iThen there’s over 800,000 people of working age with disability, who were not working in 2015 alone.ii It’s tempting to think that if you lead a healthy lifestyle and make smart choices, you’ll be fine. But the reality is you can’t predict the future, you can only plan for it.
Why it’s not about the amount you earn
One of
the biggest myths surrounding income protection insurance is that it’s only
necessary for those who are paid high incomes. In reality, anyone who is part
of the workforce will benefit from the protection and peace of mind that this
insurance provides, regardless of what they earn or their stage of life. Think
of income protection as your own personal cavalry ready and waiting to come to
your rescue should you need it.
Consider what you and your family would do if you were unable to bring home the same pay cheque overnight. Remember, periods of unemployment due to sickness or injury are reasonably likely over the lengthy course of anyone’s working life.
Parents, particularly single-income families, have the consistent pressure of providing for their children. While it might appear smarter to give precedence to other family expenses, this demographic can be hit hardest in such events, making income protection insurance a must.
Another misconception is that singles or couples can forgo income protection. Although finances might be comfortable day-to-day in a steady job, things may not always be so stable. It makes even more sense for the self-employed or small-business owners, whose monthly income can often be inconsistent, to consider income protection.
Then there’s the trap of thinking life insurance is all you need. Unexpected death is absolutely a part of life we should all plan for. But an unforeseen total or partial disability due to injury or illness is a debilitating situation that can stop you earning a living, and is equally unwise to overlook.
Consider what you and your family would do if you were unable to bring home the same pay cheque overnight. Remember, periods of unemployment due to sickness or injury are reasonably likely over the lengthy course of anyone’s working life.
Parents, particularly single-income families, have the consistent pressure of providing for their children. While it might appear smarter to give precedence to other family expenses, this demographic can be hit hardest in such events, making income protection insurance a must.
Another misconception is that singles or couples can forgo income protection. Although finances might be comfortable day-to-day in a steady job, things may not always be so stable. It makes even more sense for the self-employed or small-business owners, whose monthly income can often be inconsistent, to consider income protection.
Then there’s the trap of thinking life insurance is all you need. Unexpected death is absolutely a part of life we should all plan for. But an unforeseen total or partial disability due to injury or illness is a debilitating situation that can stop you earning a living, and is equally unwise to overlook.
What does income protection cover?
So, how
does income protection insurance cover you? Up to 75% of your monthly income is
provided or a nominated period of time to help keep your household up and
running, and provide for your loved ones while you recover. In a nutshell, it
gives you the freedom to rest easy knowing you’ll be taken care of
financially.
An inability to keep up with the mortgage, loan or credit card repayments can cause considerable stress when you’re unwell. It’s crucial to focus on recuperation at such a time, with full confidence that these debts can be provided for under your policy.
An inability to keep up with the mortgage, loan or credit card repayments can cause considerable stress when you’re unwell. It’s crucial to focus on recuperation at such a time, with full confidence that these debts can be provided for under your policy.
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