When it comes to insurance, most people think about their home, car, phone, or even life. However, there is one policy that is often overlooked, and it definitely shouldn’t be. We are talking about income protection insurance. This policy is designed to protect one of the most important things in our lives. Without our income, we can’t cover our daily living expenses or support our loved ones. If you don’t have income protection insurance in Australia, it is something worth looking into.
Why Our Income Should be Protected
Our income is something we spend most of our lives working on. It is the foundation of our entire existence. Losing it due to an accident or illness, even if temporarily, can have truly devastating consequences, causing us to be unable to cover our bills, mortgage, or the things we love.
How Income Protection Insurance Can Help
Income protection insurance is designed to cover up to 70% of our monthly income if we are ever unable to work due to an accident, illness, or other medical issue. During difficult times, this kind of safety net allows us to keep on living our lives the way we are now.
Where to Get the Best Income Protection Policies
If you want to give yourself peace of mind with an income protection insurance policy, knowing what to look for in a provider is key. First of all, it is crucial to go with a reputable insurance provider. It is also essential to invest in a policy you can adjust. This will enable you to make adjustments to your policy as your circumstances change, ensuring it always meets your current needs. Additionally, ensure it has a clear and straightforward claims process, and you understand all of the terms and conditions.
The Flexibility of Income Protection Insurance
Due to a stringent regulatory framework, Australia tends to have some incredible options when it comes to income protection insurance. If you are taking out income protection insurance in Australia, the policy will be flexible, allowing you to choose your own coverage amount, waiting time, and length of coverage.
How Often Should We Review It?
Like any insurance policy, income protection insurance should always be kept on top of. After all, it is designed to replace your current income. Whenever your income changes, it is essential to make the necessary adjustments to ensure your coverage amount is sufficient. Additionally, if your coverage amount isn’t at 70% and you have taken on new financial responsibility, it might be best to increase it.
What Are You Waiting For?
Investing in income protection insurance is not a smart financial move – it is a necessary one. If you haven’t taken out a policy yet, we highly recommend browsing the market to find one as soon as possible. We never know when there might be a pause in our income, but we can prepare for it.