Do you need income protection insurance?
Many people think that their income is safe until they lose their job. But what would you do if you lost your income tomorrow? Would you be able to continue paying your bills and meet your financial obligations? Protect yourself with Wealth Factory’s income protection insurance advice and rest easy knowing that you and your family are taken care of financially if something happens to you and you are unable to work due to sickness or injury.
Most people only think about buying insurance when something bad happens. But the truth is, it’s always a good idea to consider insurance. And with Wealth Factory, you can get advice on coverage that’s just right for you—without breaking the bank.
What is income protection insurance?
Income protection insurance is a type of policy that helps protect your income in the event that you can’t work because of an illness or injury. It can provide a monthly payment to help cover your costs if you’re unable to work for an extended period of time.
So, do you need income protection? the answer depends on your individual circumstances. That’s why it’s important to seek financial advice from a financial advisor to know what’s best for you.
However, for you to assess yourself if you truly need income protection insurance, here’s what you need to know about it and whether it’s right for you.
For many people, income protection insurance is an essential part of their financial safety net. This type of insurance provides a replacement income if you are unable to work due to illness or injury. It can cover a portion of your income, up to a certain amount, for a set period of time. It can be an important safety net for families, as it can help to cover living expenses and other bills if the breadwinner is unable to work. It is important to shop around and compare income protection policies before buying, as there can be significant differences in coverage and cost.
Income protection claims could add up to a lot if you’re out of work for an extended period of time. If you have a policy that covers 70% of your income for 30 years, that’s a lot of money that could be coming your way. Obviously, the sooner you can return to work, the better off you’ll be, but it’s good to know that you have a safety net in place just in case. It is a great way to protect yourself and your family in case of an unexpected job loss or injury. Make sure you’re fully protected by shopping around and getting the best policy for your needs.
Is it worth getting income protection insurance?
Income protection insurance is one of the most important forms of insurance for people to have, and yet some choose not to take it out. There are a number of reasons for this, but the most common one is that people underestimate how important their income is. They think that they will never be affected by injury or illness, and so they discount the chance of them ever needing to claim on their income protection policy. This is a dangerous mistake to make, as the reality is that anyone can be affected by an accident or illness at any time. Even if you are young and healthy, there is always a chance that you could be injured in an accident or develop a serious illness. If you have one, then you will be covered for any loss of income due to an accident or illness, giving you peace of mind in knowing that you will be able to maintain your standard of living no matter what happens.
Income Protection Insurance Premiums
When taking out insurance, particularly income protection insurance, there are generally two ways you can pay your premium: stepped and level premiums.
Stepped Premiums
Stepped premiums can be more affordable in the short term, but they may increase over time as your income and circumstances change. Income protection can be funded by your superannuation or by cashflow.
Level Premiums
Level premiums are generally more expensive than stepped premiums, but they offer more certainty about your future income protection costs.
The tax deductibility of income protection insurance premiums in Australia depends on your individual circumstances. You should speak to a financial adviser to work out what is best for you.
Importance of Income Protection Insurance
Income protection is one of the most important insurance policies a person can have as it is well worth the investment.
- Provides peace of mind and financial security in the event that you are unable to work due to illness or injury.
- The policy will pay out a monthly income, which can be used to cover your mortgage payments, rent, bills, and living expenses.
- This income can be vital in preventing you from falling into debt or becoming homeless.
- Gives you peace of mind, knowing that you will be able to support yourself and your family financially if something happens to you.
How do you go about getting income protection insurance?
There are a few things to consider when getting income protection insurance. Above all, you’ll want to work with a financial adviser who can help you understand the options available and make the best decision for your needs. Here in Australia, there are a few different ways to apply for it, and a financial adviser can help you navigate the process. They can also help you understand its benefits, like how it can provide peace of mind in the event of an accident or illness. Ultimately, working with a financial adviser is the best way to ensure that you get the income protection coverage that’s right for you.
Income Protection Financial Advice
Income protection insurance is an important part of any financial plan and one that should not be overlooked. At Wealth Factory, we can review your insurance as part of your overall financial planning and make sure you have the coverage you need in case of an unexpected event. So if you’re wondering whether income protection insurance is right for you, contact us today for a free consultation. We would be happy to answer any questions you may have and help you get the coverage you need.
