Picture the years it takes to climb the corporate ladder, invest wisely, and build proper wealth. Now, imagine an unfortunate accident or illness that takes it all away. While many of us are looking for the next investment, paying off debts, or working towards a promotion, there is one thing that most tend to overlook: Income Protection Insurance. This insurance policy is one of the only ways to keep our income flowing during times we are unable to work for reasons out of our control. If you haven’t safeguarded your salary, there is no better time to do it than now.
Income Protection and Why it is Essential
There are no other insurance policies that provide as much support as comprehensive income protection insurance in Australia. This incredible policy is designed to give us a monthly income of up to 75% of our current salary if we are ever unable to work due to an accident or illness. Unlike other policies that cover medical costs, rehabilitation, or offer a lump sum payment, this one keeps everything flowing steadily while we focus on recovery. With a good income protection policy, you’ll never have to worry about keeping up with your mortgage, utilities, education fees, and all other living expenses.
There is no other coverage that keeps our financial life this stable while we recover from a serious accident or illness. Without income protection insurance, our lives are at risk of experiencing significant setbacks and economic loss. It doesn’t matter what you do for a living; income protection should be a non-negotiable investment.
Understanding What Can Happen Without it
While we are healthy, it is easy to underestimate the consequences of a serious illness or injury that might stop us working for a significant amount of time. For most, losing our income for an extended period creates a domino effect that could impact every financial aspiration we have. Most without insurance experience their funds draining quickly, debt becoming overwhelming, and their future goals on standby. Furthermore, the rise of financial worries can also slow down recovery. Thankfully, all of this is easily avoidable with a solid income-protection plan.
How Income Protection’s Customisation Options Give You Complete Control
One of the best things about income protection insurance is that we can tailor our policy to align with our individual needs. For instance, if you have a financial safety net, you can design your policy with a longer waiting period before it starts paying out. You can also select how long the policy pays out for and what percentage of your current income you will need if you are unable to work. It is also possible to ask your insurance provider for additional add-ons and riders to create a much more comprehensive policy. Having the freedom to design your own policy enables you to save money and avoid being over- or underinsured.
Get Your Policy to Grow with Your Success: When to Review and Renew
An important thing to remember about all insurance policies is that they don’t always grow with us. If you are working your way up in your career and have already invested in an insurance policy, it is essential to review and amend it when necessary. Consider this: if you were earning $30,000 when you took out a policy, and are now earning $60,000, there is no way your outdated policy could support your current financial obligations.
Conclusion
If you have spent a lot of time working on building your career and wealth, don’t leave your salary at risk. We never know what is going to happen throughout our lives, but a good income protection insurance policy can keep us earning, even when we are not able to work.