What is Income Protection Insurance?
Income Protection provides you with a regular monthly payment of up to 75% of your income if you are unable to work for an extended period of time due to illness or injury. Losing the ability to earn an income for any length of time can cause great financial, not to mention psychological, stress. Having financial protection in place can help you and your family maintain the lifestyle you’ve worked hard to achieve.
With Income Protection, you will need to select the initial waiting period and benefit period. The waiting period is how long you must be unable to work before the payments start. The benefit period is the length of time the monthly benefits will continue to be paid, with the maximum period generally being to age 65. The longer the waiting period and the shorter the benefit period, the lower the premiums.
Unlike other forms of life insurance, the premiums for Income Protection are usually tax deductible.
Why might you need Income Protection Insurance?
Your ability to earn an income is one of your most important assets if not the most important. Unfortunately, many of us insure our material possessions like our car and house and forget about ourselves. Income protection is designed to assist you to pay your bills and maintain your current standard of living if you are unable to work for an extended period of time.
If you have monthly outgoings such as loan or mortgage repayments, rent, household bills, credit card payments or tuition fees that you would not be able meet without your regular income, you should consider Income Protection.