If you have an income, you should be thinking about income protection insurance. Many of us protect our cars with car insurance, we protect our bodies with health insurance, and we protect our homes with home insurance. Nevertheless, many of us seem to overlook protecting our income.
Most households rely on at least one salary coming in, to pay rent or the mortgage, to pay bills, to buy food, and to keep everyone clothed and happy. The problem is, bad things can happen, and those bad things can stop us from going to work. And if we don’t go to work, there will be no money coming in.
Being out of work because of an accident, illness or injury can be devastating to a household. Bills start to pile up, debts accumulate, and stresses rise. It’s not a good situation to be in.
However, having income protection insurance can help protect against these types of situations. Income protection can offer a substitute “paycheck” when you are unable to work because of illness or injury. It can help to cover bills, rent, and day-to-day expenses, and can stop debts from mounting up when there is no salary coming in.
So, how does it work? When you take out income protection insurance, you will have various decisions to make on the type of cover you will need.
First up, you need to decide on the “waiting period”. This is the period of time between stopping work and starting your benefits. This will vary depending on the insurance provider, but it can be between two weeks and three months.
Next, you need to decide on the “benefit period”. This is the length of time you will continue to receive benefits when you are not able to work. Again, this will vary according to the insurer, but it can be one or two years, and sometimes last all the way up to retirement.
Last of all, you will need to decide how much cover you need. You can usually cover up to 75% of your monthly income, but you will need to check with the insurer for their specific conditions.
Having income protection can mean the difference between debt and stress, and paying the bills and allowing yourself to get back on your feet in your own time. It can help to protect you and your family, and it doesn’t have to be expensive.
Suncorp offers a wide range of insurance options, including life insurance and income protection insurance. Compare life insurance and income protection insurance policies and prices at Suncorp. For quality insurance from an insurer you can trust, click here to find out more at Suncorp’s website.