What Is Income Protection Insurance?by Deepa
What Is Income Protection (IP) Insurance?
An income protection (IP) insurance policy ensures that you are covered in the unfortunate event that you are unable to work due to an illness, injury, major trauma or an accident.
An IP policy which functions as a much-needed safety net. It guarantees that you receive a tax free monthly payment of up to 75% of your income to help ease financial stress in the event that you are faced with an illness or injury.
Generally, the payout for this policy continues up till the point you return to work upon your recovery, or in the cases of those who are unable to work again, till the retirement age of 65.
The amount that you receive monthly and the coverage period is dependent on the type of income protection coverage you pay for as this policy is designed to ease off financial stresses while you recover.
Do I Need An Income Protection Insurance (IP)?
Before you decide that you need IP cover, first check if your workplace has you covered. As some companies offer income protection insurances as an incentive for their employees.
If you are not covered, or are a self-employed individual, a single person with no dependents, or a sole breadwinner of the family,speak to one of our advisors at Life and Insurance. We work with some of Australiaâ€™s top insurers to help you make the right income protection comparison and income protection quote based on your personal circumstances.
However, if you are looking for a payout that will help sustain your loved ones in the event of your death, then weâ€™ll recommend you look into getting a eezy insure policy.