Income Protection Insurance Do You Need It

Income protection gives you up to 75 of your normal income up to a maximum of 262 500 less any social welfare payments.

Income protection insurance do you need it. However if you were off work for a longer period of time a short term policy would not cover your income when you really need it. By taking out income protection insurance you can continue supporting yourself and your family while getting the rest you need. If you want to buy income protection insurance directly from an insurance company you should shop around to see who will give you the best deal. You can use a comparison website to do this.

In this article i ll try and demystify this important personal protection policy explain the features that you need to look out for and offer two real life stories to illustrate the potential importance of income protection insurance. Income protection insurance sometimes known as permanent health insurance is a long term insurance policy designed to help you if you can t work because you re ill or injured. Life insurance is an essential part of you and your family s finances but protecting your income in the event of illness or accident and is a key pillar to your future well being. It ensures you continue to receive a regular income until you retire or are able to return to work.

You probably won t be able to buy the insurance online as you will need to be assessed by the company for your suitability. Whether you need it is an important subject for serious consideration and debate. Short term policies are usually cheaper than long term cover because the insurer will only ever need to pay out an income for a limited time. Your top financial asset.

Neither income protection or short term income protection pays out if you re made redundant but they will often provide back to work help if you re off sick. Income protection is different from critical illness insurance which pays out a lump sum if you fall seriously ill. Ideally you ll never have to make a claim on your income protection insurance. But if you do it s worth knowing a little about the claims process to keep the stress to a.

The simple answer is a resounding yes. Do you need life insurance and income protection. Provided you have been self employed for at least 12 months before policy commencement date and you are an australian resident aged 18 to 59 you are eligible for real income protection insurance. Income protection do i need it.

So if you re likely to buy your income protection early then stick with the same policy for the next decade it will usually be the cheaper option.