FACT: One in two people at age 35 are off work due to health reasons for at least 30 days before turning 65. (Source AMP). It’s probably not something that many of us think about, but what would you do if you had an accident or fell sick and couldn’t work for weeks, months or even years? How would you pay your bills, credit cards, mortgage, or even look after your family?
Many people insure their homes, contents, car and life, yet fail to protect arguably their most important asset…their ability to earn an income. Our ability to earn income provides us with the lifestyles we are used to, helps us achieve our financial objectives, allows us to put food on the table; so it therefore it makes sense to insure this asset!
What is Income Protection?
Income Protection pay a regular monthly income to the insured if they are disabled through Accident or Illness. Anyone who relies on a regular income to live and pay off life necessities should consider Income Protection, particularly if you are self employed. Furthermore, premiums are generally tax deductible.
Between the ages of 20 & 50, a working person has a 1 in 3 chance of being off work for at least three months due to a disability; so let Insurance Oz explain the finer points of Income Protection and guide you towards the most appropriate Income Protection insurance offering.
Total & Permanent Disability
It is generally only available in conjunction with a Life Insurance Policy. The Premiums for Total & Permanent Disability are commonly cheaper than those charged for Trauma, due to the restrictions noted above. This type of disability insurance can also be incorporated into a Superannuation policy, potentially offering a tax deduction for those who qualify.