Income Protection Insurance

What is Income Protection insurance?

Income protection insurance is an occupation based cover that will provide you with a regular income stream on a monthly basis.  Benefits are paid if you are unable to work due to illness or injury and cover is provided 24 hours a day.  You can structure your cover to suit your personal circumstances and premium payments are usually tax deductible.

Why do you need income protection insurance?

The income that you earn is not only needed to meet your regular financial commitments, but also to maintain your standard of living.  If you were unable to work through illness or injury and therefore unable to earn an income, how would you survive financially?  Income protection insurance will provide you with 75% of your gross income until you are well enough to return to work.

Anyone who earns an income and relies on that income needs income protection insurance.  This is especially important for self-employed workers as in most scenarios both sick leave entitlements and workers compensation entitlements are not available.  If you are also the sole income earner of the family and have young children or debts, then this type of cover is a must