How bad would it be to suddenly find yourself unable to work for an extended period as a result of being sick or injured? Income protection insurance is a good way to make sure you still have money coming in if this happens to you.
In general terms, income protection insurance covers you for up to 75% of your regular income if you are unable to work due to sickness or injury. You receive the benefits until you’re able to return to work or for the length of the benefit period nominated on your policy.
This helps you to cover your day-to-day expenses, taking the pressure off so you can focus on getting well again.
Income protection insurance is particularly vital if you’re self-employed, as many people in this category would find their income dried up completely without this cover in place. Not a good place to be.
With income protection cover, you can vary things like the waiting period that applies to your policy before benefits start being paid, or the benefit period you’re covered for. Some policies offer additional benefits like nursing care or accident benefits. Your premium is also affected by your age, your occupation and whether or not you smoke.
Good news though: in most cases, your income protection premium is a tax-deductible expense. But do be aware that any benefits paid out are generally subject to being taxed.
A Financial Planner can help you consider your options when it comes to income protection to help you figure out the cover you would need if you found yourself unable to work.
With a strong understanding of the different income protection insurance products on the market – and the terms and rates offered by each – they can guide you in choosing the right cover for you. They can also assist you in applying for your cover.
Contact us today and we can refer you to a Financial Planner.