If you and your family rely on your income for financial security, then income protection insurance is something that you may want to consider. Just think what would happen if you were sick or injured and unable to work for an extended period of time? Consider the mounting bills and financial pressure you'd be under without financial assistance to relieve your costs of living.
Income protection insurance helps you to secure your income to help cover bills and expenses while you're unable to work. It can provide peace of mind for you and your family allowing you to rest, recover and get back to work.
How to Calculate Your Level of Cover
You will need to decide how much insurance will be suitable for your needs. However, to help calculate how much income protection insurance you might apply for, there are a few things you may want to consider, the first is looking at your expenses to see how much you need to keep your finances afloat every month. As a guide, consider how much your regular bills and payments are, including the mortgage, credit card payments, groceries and regular living expenses, car and petrol costs, etc., and then work out how much they need as a minimum to get by.
On top of this, you should consider the costs of your rehabilitation - there may be recurring additional costs required to cover medical bills and expenses while you're on the mend.
One thing you should keep in mind when deciding on how much income protection insurance is right for you is that you will not be able to cover your whole monthly income, and you will generally be able to secure up to a maximum of 75% of your monthly pre-Tax income.
Choose Your Cover Options
With income protection insurance, you can choose your waiting period - generally the longer you choose to wait, the lower your premiums will be. You can opt for either a 30 day or 90 day waiting period, so consider what you have in your savings and how long you wish to wait until your benefit payments begin. Additionally, you should consider your existing leave entitlements or salary contribution arrangements at your place of work.
Finally, consider how long you may be out of work and decide on the length of time you want to receive payments. You can choose a benefit period of six months, a year, two years or five years, depending upon your insurer.
Why Wait? Apply for a Quote Today!
With some of the income protection cover products available, there are no medical or blood tests needed and all Australian residents aged between 18 and 59 can apply. Plus, premiums are generally tax deductible.
Don't wait until it's too late, compare income protection insurance today with Choosi and protect your financial security.
These articles are provided as reference material to allow more informed decision making, but are not intended as being a complete source of information on any topic. All readers should make their own independent analysis on the topic to make sure they have considered the aspects that are important to them.