Why You Need Income Protection
You can’t underestimate the importance of peace of mind. It’s easy to think your income is going to be a permanent fixture in your life – if you’ve got a stable job, why should you worry about losing your stable income, right?
Unfortunately, you can’t predict the future. While we all feel invincible, accidents and illnesses can happen. Should you fall ill or sustain a nasty injury, you may find yourself unable to work. We have prepared a simple and convenient list of those 6 things you need to know to understand why it’s important to have Income Protection insurance.
1. Income Protection guarantees ongoing quality of life
There’s nothing better than having the assurance that your finances will be covered, no matter what happens to you. Income Protection insurance brings you this guarantee: if you suffer a serious illness or injury, you will have financial protection that will keep you afloat until you can get back to work. Income Protection can provide up to 75% of your gross earnings.
2. It provides peace of mind for you and your family
It’s never easy to raise a family. With a couple of kids, you (and often your partner as well) have to work extra hard to give them a comfortable life.
If you find yourself incapacitated and unable to work, that loss of income can substantially impact on your family’s finances.
Thanks to Income Protection, you won’t have to worry about the implications of losing an important income. Your family can rest easy that you will all be cared for, regardless of the situation.
3. It allows you to keep up with repayments
When you’re seriously ill or injured, the last thing you need is to worry about debts. It can be stressful to think about how you’ll cover daily expenses, let alone pay off a mortgage, a car loan or credit card debts.
Income Protection can be a great help to people who need to keep up with any debt repayments. By supplying up to 75% of your income, it can ensure your debts will be paid so you can get on with the task of recovery.
4. It can provide an extra level of protection
Income Protection can be a great supplement to other insurance plans. While it’s important to keep yourself covered in case of an unforeseen death, an Income Protection plan can help keep you covered in case of unforeseen disabilities that could keep you from working and making a consistent income. You can purchase Income Protection insurance as part of a Life Insurance package.
Income Protection can also be a valuable supplement alongside a worker’s compensation cover like WorkCover. Not all workplace injuries are eligible for WorkCover compensation (since they have to be a result of the employer’s negligence), so having Income Protection gives you an added level of protection in any event.
5. Income Protection allows you to focus on recovery and recuperation
Many people at some point in their lives will find themselves needing some rest and recuperation from a serious illness or injury. But without the right protection, they may find themselves unable to put all their effort into getting better.
Having to worry about funds is always stressful, not to mention your additional concerns about when you’ll be able to return to work and begin earning money again.
An Income Protection policy will help make sure your income doesn’t cease during these trying times so you can focus on the most important task at hand: your recuperation.
6. It could happen to you!
For many, the biggest hope of their lives is to be able to have the consistent income to provide for themselves and their family well into old age.
Unfortunately, not all of you will be able to see that dream come true.
It doesn’t matter how much you try to stay healthy and steer clear of danger. While we like to deny it, many things operate outside of our control. There will always be risks you simply can’t avoid. Sometimes, all your careful planning and smart decision-making can be for naught if you don’t have the right protection.
In 2013, over 1,000 Australians were killed on our roads. But many more were injured. You may be thinking that 1,000 is a small number – surely it won’t happen to you? Those injured on the roads were probably thinking the same thing. Is it worth the risk?
Of course, there’s much more to worry about than car accidents. Every year, some 55,000 Australians suffer a heart attack and an estimated 128,000 new cases of cancer are expected to be diagnosed this year, with that figure rising to 150,000 by 2020.
Do you really want to be caught out? With all the risks out there, it may be a risk not to get Income Protection to protect you and your family in the future. Guarantee your children, your partner, and yourself peace of mind and get a quote with us today.
About Gerard PhillipsGerard is the Managing Director of Wealth Smart Australia he has completed courses for Diploma of Financial Services (Insurance Broking), a Bachelor of Commerce majoring in Insurance and Marketing and is a Fellow of the Australian and New Zealand Institute of Insurance and Finance and is currently a Certified Insurance Professional (CIP), he is also a member of the Association of Financial Advisors (AFA).