Important Benefits of Income Protection Insurance

We often don’t think far into future when it comes to holding stability nor do we expect or be prepared ahead for the worst to happen. Many often find themselves changing their course of life due to unexpected health or injury issues. This sudden impact not only affects the individual, but also the loved ones around surrounding them due to the lack of earning.

Also known as permanent health insurance, income protection insurance replaces your regular income payment if you’re not longer able to earn for reasons related or sickness or disability. While the income protection insurance won’t cover up the exact amount, it still pays your two thirds of it. There are many benefits that come along with income protection insurance. Keep reading as we talk about them below.

The ability to customize

Did you know that and income protection insurance can be customized as per the situation of the issue you’re going through? There are so many income protection quotes to select from, making it easier for you to choose a policy that works for your circumstance, be it higher premium policies, reduced premium policies, stepped policy or much more.

Income Protection Insurance
Image Source: Unsplash

The continuous payment

Having an income means that you’re eligible for 70% of your income in case of drastic life changing events that stop you from having the ability to work, such as accidents, major health problem, etc. This is one of the greatest advantages as it allows you to continue receiving a monthly income, making it possible for you to live a worry-free life in terms of costs, bills and other expenses.

The possibility of tax-deductible

 Most often but not, insurance is never easily tax-deductible, which means that you would continue having to pay tax regardless. While house insurance, personal insurance, trauma insurance, etc. require you to pay the tax, income protection insurance policy that isn’t taken through superannuation can be tax-deductible. However, this does depend on the benefits your income protection insurance covers.

The return to normalcy

Being able to have your income covered even amidst a life changing crisis can help you focus on recovering and getting back to normal without additional worries about covering the cost of expenses with a lack of job. Certain changes in life can have negative effects on moving forward, causing a strain on your health even further. This gives space for things to get better at a quicker pace.

The financial strength to take care

Your family often depends on your monthly income in order to cover up a variety of expenses, including taking care of their own health. With your income covered, you wouldn’t have to worry about being unable to take care of them. From check-ups, medication to even school fees and food on the table, you have it all sorted.

Applying for income protection insurance is easier than you think. The process is a smooth and easy flowing one that requires medical proof and certain supporting information regarding your income in order to claim the insurance.

Leave a Reply