Who will look after your finances if you can’t work due to sickness or injury? Health insurance may cover a proportion of your medical bills, but it won’t cover your rent or mortgage and living costs.
The majority of Australians have no trouble insuring their home and contents from fire, theft and weather damage. It makes a lot of sense to take out insurance on your home.
It’s your biggest asset, right?
Wrong… The average Australian could earn around two and a half million dollars in their lifetime, much more than the value of the average home. And yet the majority of income earners don’t insure their largest asset – their income earning capacity.
Your home, car, food, clothing, children’s education –all depend on your income. That’s why for many the loss of income resulting from the inability to work due to sickness or injury can cause serious financial hardship. When you think of how your lifestyle could be affected, it simply doesn’t make sense to overlook this important cover.
Income protection insurance (also known as salary continuance) is designed to provide a regular income in the event that you are unable to work due to sickness or injury. Generally, income protection insurance provides a regular income during a period of disablement for up to a pre-determined and agreed benefit period. The benefit amount payable is up to 75 per cent of your income.