What does income protection insurance cover?

 
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What does income protection insurance cover?

A serious injury or illness can force you to put everything on hold, including work. That can cause severe financial stress if you rely on your income to meet financial obligations and provide for your family.

One minute you’re on a leisurely bike ride with your friends and the next you’re facing operations and months of recovery for a broken leg. Or maybe a check-up at the doctor turns into tests and the diagnosis of a serious illness. If you are no longer able to work, income protection insurance can provide an ongoing benefit of up to 75% of your monthly pre-tax income up to a maximum benefit of $10,000 per month*, for policies Choosi arranges direct. The result: you’ll be able to continue to support your family and pay the bills.


Who needs income protection cover?

Anyone who works

Income protection cover should be considered by anyone who works and would need assistance to meet their financial obligations should they be unable to work due to injury or sickness – income protection insurance can provide this.

For those who rely on their trade or are self-employed, income protection might be even more vital.

Tradespersons

More than the average office worker, tradespeople often need unrestricted bodily movement to perform their skill. Consequently, an injury or illness could prevent you from being able to work.

If you get hurt playing backyard cricket, fall down the stairs at home or become seriously ill outside of work, you’re unlikely to be able to rely on workers compensation, so unless you have income protection insurance, you may find yourself under real financial stress.

Self-employed

The self-employed face similar challenges of being unprotected when income is lost through injury or illness.1 Business owners may not be covered by Worker’s Compensation Insurance,2 don’t necessarily get paid annual or sick leave,1 and can be in an equally sticky financial situation if they cannot work. With potential financial commitments like loans and a family relying on your income, a bad situation could snowball into financial difficulty with far-reaching impacts.


How much does it cover?

For those with income protection insurance, relief is in knowing they can receive up to 75% of their pre-tax income, up to a nominated amount or $10,000 per month for policies Choosi arranges direct.

Income protection helps you protect what you work hard for: your family and your future. Having the right cover can make all the difference.

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This is how Choosi can help. We can help you to compare policies so that you can choose the right level of cover for you. We can assist you through the optional benefits available, and make the application process as smooth as possible. Ask Choosi’s team of Choosers about income protection insurance by calling 1300 364 335 or request a quote online today.


This is general information only and does not take into account your personal objectives, financial situation or needs. You should consider the relevant PDS available on this website prior to purchasing any product. Choosi offers insurance products from a range of brands but does not compare all products available in the market.

*A waiting period and benefit period applies.

References  

1. ASIC's MoneySmart, Self-employed people, https://www.moneysmart.gov.au/life-events-and-you/self-employed-people
2. WorkCover NSW, Sole Traders & Partnerships, Department of Finance, Services and Innovation, NSW Government, https://www.workcover.nsw.gov.au/insurance/workers-compensation-insurance-for-your-business/who-to-insure/sole-trader-and-partnerships

 



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