Why do you need Income Protection Insurance?

Why do you need Income Protection Insurance?

For most people, one of the vital assets is the ability to earn. Have you ever thought if your ability to earn is taken away due to illness or accidents, how are you going to survive the pressure? Planning for your future means you must plan for the unexpected and must make arrangements in such a way that your day to day expenditure and your family keeps running even if you are not able to work. These can be in terms of long-term saving, investing in assets that could provide you returns on a long term basis or investing in insurance that protects your income.

As someone who has been working in the Australian insurance industry, I have realized that it’s hard for some people to ever imagine anything bad going in their future. The confidence for some in such cases comes from their solid investment but for some this comes from their gut feeling. While it is essential to have a positive outlook towards our future, it is also imperative to have a plan B.

Before buying an income protection cover, however, it is important for you to know how it benefits you and your family. As a leading provider of online income protection (IP) cover in Melbourne, we pride in being open about the benefits and potential pitfalls of  IP cover. Offering factual information to clients is the foundation of our business as decision based on information tend to be more sustainable and value oriented.

In short, Income Protection Policy is a long term policy which will cover you if you are unable to work due to illness or nasty injury. This policy ensures you continue to receive 75-80% of your income even though you are not able to work. With that, here are certain facts you should straight up before doing further research:

Keep paying off the debt

Will your debts and bills disappear you get sick? No. Debt tends to accumulate more due to the medical expenses you will have to pay if you are injured or ill. Paying the debts and mortgage without income can be stressful.

Income Protection will help you to keep up with debt repayments. With 80% of your income being paid, you won’t have to worry about debts.

Focus on recovery

The most important thing when you fall sick or if you are injured is your recovery. Financial stress won’t let you recover from illness or injury any time soon; it can be harmful to your rehabilitation. Without income protection insurance, you might not be able to put all the efforts into getting better.

As income protection policy will cover your expenses, you can entirely focus on your recuperation.

Maintain Quality of Life

It is challenging to live the same life if something happens to you. The routine and lifestyle drastically change; you will have to lower your expenses and degrade your quality of life.

Income Protection Insurance will help you maintain the quality of life; it will assure that your finances will be covered if you ever get stricken by accident or illness until you can get back to work.

Reassurance to your family

It’s not easy to raise children; you and your partner have to work hard every day to give them a comfortable life. Your or your partner’s loss of income can have a significant impact on your finances.

With income protection cover, you can overcome some of your expenses and ease your life. Your family will be okay even if you feel incapacitated and unable to work for some time.

It could happen to you

Life is full of risk, you never know what will happen in the next minute. No matter how much healthy you are, the danger is not clear yet. You cannot control the external factors; emergencies won’t knock your door before arriving.

Out of all the risks, the biggest one is not getting the right protection for you and your family. Get a quote for Income protection policy and secure your family and yourself from the uncertainties.

About the Author

Christian Taylor, is an assistant insurance agent at Aspect Underwriting- a boutique insurance agency in Melbourne that provides a wide range of insurance brokering and cover services including online Accident, Health, Trauma, and Income Protection quotes. Reach out to him at online@aspectuw.com.au to discuss your insurance needs.