Australia is one of the best places on the planet for someone who wants to make something of themselves. Being an ambitious go-getter can get you anywhere in this country, but what if something unexpected causes you to fall back to the very bottom? We know it isn’t a nice thought, but it is something worth checking in on to ensure we are covered for the worst-case scenarios. Income protection insurance is the best possible way for Australians to have financial security during unprecedented hard times.
The types of things that can affect anyone’s regular income
It is always best to be optimistic, but it can be foolish to think we are invincible. Thousands of Australians have a disrupted income every year. Below are three of the primary reasons this can happen.
Sudden illness or injury – Even those in the prime of their life are susceptible to injury and illness. It isn’t a pleasant thought, but it can happen.
Mental health issues – As great as life is in our modern age, it doesn’t come without its faults. Mental health problems are on the rise all over the world. When you’re working hard and doing all the right things, that is when stress can reach its max and lead to various problems that can impact work.
Economic downturns – We can never be sure when the next economic shift will occur and who it will affect. However, all of us can fall victim to it.
The importance of a good income protection insurance policy
In the corporate world, protecting assets is standard protocol. You need to think of your income as your biggest asset and figure out the best way to protect it. Income protection insurance is the best way of doing this.
When we cannot work for whatever reason, our bills and mortgage don’t pause, so we need to prepare for it. You should always invest in an exemplary income protection insurance policy that ensures your lifestyle is maintained no matter the circumstances.
This means that instead of worrying about finances, you can focus on recovery and stay in the best possible mindset. Now, that is peace of mind.
What you can expect from a good policy compared to a bad one
A stellar income protection policy will mean that you never have to worry about what the future might hold. You will receive adequate coverage of up to 75% of your salary; you should be able to choose how long you wait before your coverage kicks in; it should have a choice of benefit periods, cover your specific occupation, and also include rehabilitation benefits to help get you back to work.
On the flip side, a not-so-good policy may be vague, and it can be challenging to claim anything back when you need it; its coverage scope may be limited and can be full of hidden clauses that don’t do us any favours.
Income protection insurance is something that we recommend for every working Australian, whatever financial position they are in. Our income can have interruptions throughout our lives, so why not be prepared? However, this is an insurance policy you should read up on first to ensure you are getting what you pay for.