Most people struggle to meet their daily needs after they retire. Also, when they lose income due to accidents or illness, they find it difficult for them to meet their daily needs. But if you have an income protection insurance cover, it can lessen the pain.
You should get an income protection insurance cover because it is a policy designed to ensure that you receive a regular income until you return to work or retire. The cover allows you to claim a certain amount of money every month until you return to work.
The cover is therefore a permanent health insurance cover that guarantees the policyholder to receive two-thirds or half the earnings from the job. Also, such income is tax free. But you will not start receiving the money immediately after you get incapacitated. Some companies will need a minimum of 4 weeks up to 2 years before they start paying. Read on to learn why it is important to get income protection insurance.
1. It Ensures That You Continue Earning An Income When You Can’t Work.
Although most people avoid thinking that one day they may suffer from some illness or injury, which may make it difficult for them to continue working or receive wages or salary, the truth is that life can turn upside down at any time. When it occurs, it becomes difficult to continue working and earn a salary. But if you have income protection insurance australia, you will be entitled to 70 percent of your income every month. The money should help you pay your bills, including school fees, mortgages, healthcare and groceries.
2. You Can Customize The Policy
It is possible to customize your income protection policy to your individual needs. You have the option of paying a higher premium to enable you to start receiving payment two weeks after making the claim. You can also choose to extend or reduce the premiums you pay and extend the period up to two years. Also, you can choose a policy that pays benefits up to 2-5 years or one that will pay benefits until you reach 65 years.
If you are a young person that is just starting to work, you may choose a policy that allows you to pay lower premiums when young but which will increase as you get older.
3. You Can Use Income Protection To Take Care Of A Sick Child
When your child gets injured, you may need to stop working to take care of them. So a policy that comes with a family care feature which allows you to take time off and take care of the sick child may be necessary.
4. The Premiums Are Tax-Deductible
The premiums you pay for an income protection cover are tax-deductible. So if you are paying the tax directly, you will not be taxed on the amount that goes to paying the premium.
Of course, there are many other reasons why you may need to consider getting an income protection cover. But the fact that it provides a regular income protection capability and the ability to customize a policy to suit your specific needs are more important.