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In this current economic climate, Australians must protect one of their most important assets, their income. You might be well-compensated right now. However, you may find yourself unable to work for an extended period of time and lose your income stream that would be disastrous to your family especially in these times of increasing prices of commodities and goods. Having income protection insurance would avert you from that kind of disastrous situation, enabling you and your family to survive without your income for an extended period of time. Income insurance is the best protection you need right now. It can provide you and your family the much needed income stream should you become unable to work due to an injury or illness, even for an extended period of time regardless of impairment. If you don’t have savings, having an income cover will enable you to continue supporting your household, repay your mortgage or even save for the future. You might think that Workers Compensation will be able to cover your costs in the case of an accident, but Workers Compensation can only protect you if your injury is connected with work. Having income protection can cover you 24 hours a day, anywhere in the world, regardless of impairment. Benefits of Income Protection for Australians -
Weekly or Monthly benefit paid regularly. Income protection can pay you out a monthly benefit normally up to 75% of your gross salary in Australia to cover your lost earnings in instances when you will be unable to work due to illness or injury. -
Short-term redundancy cover. Income protection in some plans could even allow for short-term redundancy cover as well. -
Covers you even for longer period of time. The real financial risk, in most cases, when you are unable to work is long-term, such as having to take 5 years off work. Income protection can provide you cover until you have recovered sufficiently to work again, or up until the maximum benefit period as stated in the policy which is normally 2 years, 5 years or up to age 65. -
Benefits are free of tax. Payouts paid from the policy, following an accident or illness affecting the policyholder, are free of income tax and National Insurance. How much Income Protection do I need? The amount of income cover you will need will be determined by your salary. In Australia, the maximum amount of income cover you can get is usually limited to: -
For employed: you can cover 75% of your current gross salary. This includes employer packaged fringe benefits and superannuation contributions. -
For self employed: 75% of the income generated by the business due to your personal endeavor less your share of expenses. In certain income limits for instance ($250,000 a lower percentage of income may apply as well as overall maximum levels of monthly benefit sum insured will also apply. In assessing your income cover, you need to take into account the costs of meeting your debts (mortgage, etc.); providing sufficient funds for a spouse, children or other dependents; and maintaining your assets & investments, as well as determining whether the monthly premiums are affordable for you on a long-term basis. How to Compare Income Protection Quotes? You can look online to compare income protection insurance quotes. There are websites out there that let you compare the market leading insurers and compare quotes. There are even websites out there that provide quotes from the market leading insurers to ensure you get the most competitive plan. To enable you to make an informed decision, you must know all the details in the comparison quotes, the differences in the policies and the reasoning behind the price differentials so you are clear on what you are getting. Insure4U - Your guide on choosing life insurance quote to pet insurance Australia. Let us guide you through the process of finding the right insurance for you and your loved ones.
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Income protection, Income protection insurance, Income protection insurance australia,
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