What Is Income Protection Insurance?

By Author: Jaxon Kelly
Total Articles: 20
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Should you find yourself in a predicament whereby you are unable to work, income protection cover is a way in which will provide financial security to your family. At an already difficult time, you will not have to face any financial pressure as you will be able to receive monthly benefits with income protection cover to replace your monthly income. Income protection cover can be tailored to suit your needs by merely selecting the level of financial protection you require. You can also request optional rehabilitation benefits which will enable you to get back to work a lot faster. You have the option to choose a waiting period of either thirty to ninety days and you have the option of selecting how long you want to receive your benefits for such as six months, one or two years or up to five years.

You have the option to pay your premiums either monthly or fortnightly to your insurance provider, should you be unable to work for an extended period due to an injury or illness, income protection insurance Australia ...
... will pay you up to 75% of your pre tax income of up to $10 000 monthly. Income protection cover can help you cover your day to day living expenses as well as help with medical costs. No matter if you’re working for a company or you are self employed, you can apply for income protection cover if you have been working for at least 20 hours a week for at least twelve months before commencement of your policy. On taking out such a policy, you are not required to undergo blood tests or any medical examinations. All Australian citizens that are aged between 18 and 59 can apply, although you are required to be a resident, and the premiums are also tax deductible. You can now protect your income by going online and comparing income protection cover options today. Income protection cover is important as this type of insurance will help replace your income if you should meet with an illness or accident that prevents you from working and earning an income. Many Australians are under the impression that they only require life insurance; however, life insurance only pays out on total or permanent disability or upon death of the insured.

Statistics have revealed that being laid off work as a result of an accident or illness is a far more common way of preventing you from going back to work as opposed to death occurring. Bear in mind that if you are unable to work due to health reasons, your daily expenses are not going to change, and without income protection cover you could face financial hardships.