For everyone, there always lies a risk of not being able to work at one point of their life due to some injury or illness. Although worker’s compensation and sick leaves provide a certain level of coverage against such income loss, if you have adequate coverage on your income protection insurance, you will receive an added level of coverage. This coverage will ensure you receive all sorts of enjoyment and a similar lifestyle which you would even if you didn’t have that injury or illness. Obtaining the right coverage on your income protection insurance will also make you and your family members keep getting enough financial support until you’re fully recovered.
If you’re an Australian who still falls in the category of people who don’t have income protection insurance, this post is for you as we will discuss the reasons to get one. Read on to know more on this.
Income protection offers you more than sick leave or worker’s compensation
Besides getting access to the benefits of sick leave and worker’s compensation policy, you can still get added benefits through the income protection insurance. When you’re eligible for sick leave or worker’s compensation or other benefits, these might never cover the expenses that may arise due to the prolonged injury or illness. On the other hand, income protection insurance will cover 75% of your income, based on the insurer and the policy. The policy payout will be received in the form of a definite sum of money which you could and you will receive this till you return to work. This clearly shows that you will remain 100% protected even though you’re injured or sick.
You gain access to added options
Income protection is versatile enough and you will be able to qualify for added coverage. You may also get benefits like accident benefits, extra disability benefits and nursing benefits. This type of insurance differs from permanent and total disability cover. The former covers you during an event when you’re declared as permanently disable to work. Income protection insurance will offer flexibility to be covered for different types of injuries.
Tax perks
One more reason for getting income protection insurance is the tax perks that are associated with getting it. The premiums that you have on the insurance policy are deducted from your taxes like critical care insurance premiums aren’t tax-deductible. The tax deductibility lets you reduce the burden of paying hefty taxes while also reducing the risk of losing your present income level.
Lets you maintain your standard of living
Since income protection insurance replaces the regular income that you make in a month, it pays at least 75% of the amount that you actually make. Hence it can be clearly concluded that you will be able to lead a similar lifestyle as you would if you didn’t have the injury. Instead of letting the illness disrupt your life, you can maintain a similar quality of life.
So, now that you know the reasons to invest in income protection insurance, make sure you go for Australian income insurance comparison before settling the deal with some company. Try to choose the best policy.