In this uncertain world we live in, taking precautions is essential, and income protection insurance is a way to secure your income, should you be unable to work for any reason. Many Australians have taken out income protection insurance (IPI) and for good reason, as it covers many situations, and if you have yet to arrange income protection insurance, here are a few of the benefits.
- Guaranteed Income – In the event the policyholder is incapacitated for any reason, their income protection insurance will ensure they receive at least their current salary, and this would continue until the policyholder’s death, recovery, retirement, or the end of the insurance contract. This type of insurance is automatically offered by some employers, and if you have not yet considered IPI, perhaps this is the time to consider a policy.
- Regular Payments – The method of payment for income protection would be either monthly or weekly, and would typically be tax free. If a person is unable to work for any reason and they have taken out income protection insurance, they should contact an experienced superannuation lawyer who can assist in making an income protection insurance claim, and with their expert advice, you will always be informed.
- Ongoing Support – Once the policyholder is incapacitated and is therefore receiving payments from their insurer, the insurer cannot refuse to renew the policy, providing all premiums are promptly paid. This gives the policyholder a high level of security, and ensures financial security over a long period, should it be required.
- Extra Support – There are occasions when the premiums for IPI do not have to be paid by the policyholder, and are waived for the duration of the claim. Of course, each policy is different, and when taking out the cover, one should very carefully read the terms and conditions, and some can be as long as 30 pages, which is why it is a good ideal to have a legal expert take a look prior to making a commitment.
- Peace of Mind – While no one likes to think about bad things happening, one can never be certain of anything in this modern world, and a person’s life would change instantly if they were incapacitated and no longer able to work. An employer might honour their contract with an employee who is unable to work, but this rarely extends beyond a year, and if the injury or illness results in long periods of inability to work, your ICI will cover you, and you will receive your last current salary indefinitely.
Income Protection Insurance is an essential cover for every working Australian citizen, and if, for any reason, you have not yet arranged this, now is the best time to remedy the situation, and with online information, sourcing the right insurer has never been easier. Once you have this cover, you can relax, safe in the knowledge that your salary is now protected.