Income Protection as the name suggests is a form that replaces your income in the event that you are unable to work for an extended period of time. It pays up to 75% of your average annual income, on a monthly basis and is designed to cover your living expenses if you are unable to work due to sickness or injury
Income Protection has waiting and benefit periods. The waiting period refers to the number of days before the commencement of income protection cover benefits, normally 14, 30, 90 days or possibly 2, 3 or 5 years after the claim is lodged.
If you have sufficient savings to last one or two years, you may choose to have cover that only starts after say the first two years, bearing in mind the longer the waiting period, the cheaper the premiums.
Imagine trying to pay your mortgage or other debts if you were off work for an extended period of time due to sickness or injury. The bottom line is you simply couldn’t, with the end result being you’d lose your house.
You can’t rely on sick leave as this normally only last a few weeks at best, so how would you pay for the simple things in life such as food, bills, school fees etc.
Income protection gives you the peace of mind, that should anything happen and you can’t work for a period of time at least you can focus on your recovery knowing that your bills and mortgage repayments will be taken care of
For an obligation free assessment why not contact one of our experienced Financial Advisors on 1800 111 455 and put your mind at ease.