What is income protection and how can it help Australians like me?
As many as one in three households in Australia are living pay check, to pay check. This means that if they were unable to work because of illness or injury, they would not have enough savings to get by. More shocking still, less than a third of Australians have income protection plans. By ensuring you have a sufficient income protection plan you are protecting your most important asset – your ability to earn.
The amount of income protection you require depends entirely on you and your family’s monthly expenses and living costs. Most people take out additional cover to protect themselves in the result of an illness or injury, or to safeguard their superannuation and retirement savings. The amount of benefits you receive differ if you receive sick leave, worker’s compensation or social security payments, such as Centrelink.
What are the benefits of insurance protection in Australia?
In Australia, you can receive up to 75% of your regular income if you are unable to work due to an injury or illness. This cover will ensure that you and your family’s finances are secure if something unexpected happens. While covered with insurance protection, you will receive monthly payments to help you cover your and your family’s costs if you find yourself out of work. These payments can help you:
- Cover living expenses
- Cover loan, mortgage and other debt repayments
- Prevent you exhausting your savings
- Prevent you relying on Centrelink, or other social security assistance
It’s important to note that even if an income protection claim is successful, benefit payments will not begin straight away. There always a waiting period in which no benefit is available, so make sure you choose an appropriate waiting period when selecting your income protection plan. While shorter waiting periods are better for you, plans with longer waiting periods come with a cheaper premium. You also need to consider your benefit period. This is the amount of time you will receive payments. Plans with longer benefit periods will have higher premiums.
Do you need income protection for you and your family?
If you and your family are reliant on your income, then contact us about an income protection plan today. The experienced financial advisers at Guardian Group can assess you and your family’s situation and choose the best income protection for you. We’ll talk you though the benefits of stepped and level premiums, and help you decide whether an agreed value, or indemnity policy, would work better for your financial situation.