Should I Get Income Protection

Covering utilities, groceries, and a mortgage or rent payment can be quite stressful if your income is disrupted and it gets frightful if you add taking care of family members and paying down debt. Income protection insurance provides reassurance and cash to help you and yours through difficult times. To help answer, “Should I get income protection?”, we’ll be outlining the general purpose and benefits of an income protection policy.

Financial matters are personal and unique by nature so it’s best to discuss your situation with a professional. Contact Horizon Wealth Advisory and discuss what personal insurance options fit your unique circumstance. Book an online consultation today.

What is Income Protection?

Responding to a question like “Should I get income protection?” requires understanding what it is and what you gain by having it. Income protection insurance helps cover lost income in times when you can’t work due to injury, a disability, or illness. You can receive up to 70% of pre-tax income plus super contributions on a consistent schedule during the time you’re unable to work.

Why Should I Get Income Protection Insurance?

In general, it’s always beneficial to have options when things go sideways and removing financial pressure from an already stressful time can be a relief. Several specific and important perks exist; they should be factored into answering should I get income protection.

Sustained income

Maintaining a consistent flow of income when you’re sick and going to hospital can be difficult while potentially increasing your monthly bills. Income protection can help keep you out of debt while giving you peace of mind.

Rehabilitation assistance

Illness and injury can lead to medical expenses outside of your normal budget. You may be able to receive compensation specifically for rehabilitation courses or equipment, depending on your income protection policy, and start your recovery without added financial anxiety.

Tax deductible

You will be eligible to claim your income protection insurance premium as a tax deduction. This deduction is specific to income protection insurance when held personally.

Customisation

Your income protection policy can be changed to fit your personal situation and cover what you need at a reasonable price. It is possible to pay higher or lower premiums and adjust the payout period of your policy.

Additionally, you have options to set the length of the policy at one, two, or five years. Age dependent policies exist, a stepped policy can benefit those starting at a younger age with low-cost premiums that increase in price as you age. While a level policy establishes its premium at the time it was taken out.

Redundancy Coverage

Change is consistent regardless of the industry you work in which means you may become involuntarily redundant. Income protection can help act as a reserve during a time when you have lost your job.

Benefits for Your Children

You may be able to access childcare benefits from your income protection policy. If you find yourself unable to take care of your child or children, you may be eligible for additional benefits.

Family Care Cover is an extra feature available to parents with a child who has gone through a severe illness or accident. A parent can receive this payment in situations where they are required to quit their normal work and attend to their stricken child.

Ease and Peace of Mind

Insurers will help make filing the paperwork as easy as possible and get your claim processed quickly. Not working can cause a tremendous amount of anxiety but having income protection insurance will help maintain financial stability and get you through difficult times.