By
A life insurance policy could be a wise addition to your financial plan if you are thinking about providing ongoing security for your loved ones. Your decision as to whether life insurance is a smart investment depends on what you want it to do for your family if the unexpected were to occur. To learn more, you can browse the comprehensive policies of Aspect Underwriting and get more insights on the most beneficial policy for you.
As far as insurance is concerned, health, life, and general policies are amongst the most popular in Australia. This article primarily focuses on life insurance and explores the additional areas of accident and death cover, trauma Cover, TPD cover, and income protection insurance that provide payment in the event of death or permanent disability.
Let’s read further to find out what income protection insurance is and why it’s crucial to own one.
What Is Income Protection Insurance?
Income protection is a policy that replaces most of your income if you become sick or injured. In case you are unable to work due to a medium to long-term illness, injury, or disability, you’ll receive a regular cash payment. However, unemployment is not covered by income protection insurance. Being self-employed or in full-time paid employment is necessary to qualify for income protection insurance.
In Australia, income protection insurance is generally known as Salary Continuance (SC) or Temporary Total Disability (TTD), but they all offer the same protections. With the best income protection insurance, an agreed value policy pays the policy holder a monthly benefit regardless of current income. An agreed value policy requires showing proof of income when applying for coverage.
Why Is Income Protection Insurance Necessary?
In the event of illness or injury, if you do not have income protection insurance, you may have to dip into you savings, sell assets, or request assistance from family or Centrelink. It may be difficult for you to maintain your standard of living or pay for the care and medical assistance you require. Those circumstances can create extra stress for your family and the overall recovery process.
A person’s income is protected when they are unable to work due to illness or injury, and income protection pays an ongoing monthly benefit for a period of time to:
- Help you meet living expenses and repay your debts while still maintaining your lifestyle.
- Reduce or eliminate the need to sell assets to generate cash.
Policies that offer income protection may include options such as:
- The increasing claims option backs inflation-indexed payments
- Rehabilitation and related benefits.
Life is full of uncertainty, and over the last two years, many Australians have been forced to confront that fact. If you have children, family members, or other loved ones who depend on your income, it’s only natural to wonder how they would fare if you could no longer provide for them.
Income protection insurance can help keep those worries at bay. While details differ between providers and policies, income protection can cover a certain amount of your pay for a set period of time if you’re unable to work due to illness or injury. If you’re unsure how to begin researching and comparing policies, consider the best income protection insurance cover from Aspect Underwriting.
Comments