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Do I Earn Enough Money to Need Income Protection Insurance?

Income Protection provides you and your family with a financial safety net in the event that you are left unable to work.
minute read

One of the biggest advantages of Income Protection Insurance is that it acts as a financial safety net in the event that you’re left unable to work due to an accident or illness. While we can’t predict the future, it’s important for us to plan for it and all of its possibilities. 

Many people believe that Income Protection Insurance is only suitable for high-income earners, but the reality is, it’s suitable for anyone who earns an income, regardless of how much they earn. 

What is Income Protection Insurance? 

Income Protection Insurance is a source of income that gets paid out to policyholders if they’re left temporarily unable to work as a result of injury or illness. This payment provides financial support and peace of mind to a policyholder’s family members while they recover.

With unexpected death is an aspect of life that we should all plan for, it’s important that you consider an appropriate Life Insurance Policy, and have an understanding that Life Insurance and Income Protection Insurance are not the same thing. In order to financially protect yourself and your loved ones from an unforeseen total or partial disability leaving you unable to work and earn a living, don’t overlook the significance of Income Protection Insurance.  

What Does Income Protection Insurance Cover? 

Over a nominated period of time, Income Protection Insurance will provide you with a monthly income to help you provide for your family and loved ones while you recover. The payments can also be used to settle debts such as credit card repayments, loans and mortgages, which gives you the freedom to focus on recovery instead of worrying about your debts. 

Most super funds offer their members Income Protection /insurance, which can be a cheaper option. But cheaper premiums often come with a limited level of cover. Moneysmart by the Australian Securities & Investments Commission notes that “insurance premiums through super are deducted from your super balance which reduces your savings for retirement”, which suggests that a separate Income Protection Insurance policy might be better suited for you and your family’s needs.

Why is Income Protection Insurance Important (Regardless of How Much You Earn)?

Income Protection Insurance is beneficial for any individual who is a part of the workforce. Regardless of what an individual earns, or what stage of life they may be in, Income Protection provides peace of mind and financial support to policyholders when they need it the most. 

Because illnesses and injuries are likely at some point, but impossible to predict, it’s important to consider the impact it could have on your family and loved ones if you were unable to bring home your same paycheck for an extended period of time. 

How Does Income Protection Insurance Benefit Families and Couples?

Families, specifically single-income families, are required to constantly provide for their children. For this reason, families are often the hardest hit by difficult events, making the need for Income Protection Insurance even more necessary. Similarly, couples can also benefit from Income Protection Insurance in the event that one partner is unable to work as a result of an illness or injury and they become reliant on only one stream of income. Income Protection works to alleviate the stress associated with being out of work by providing a second stream of income. 

Income Protection Help at Your Fingertips 

For further support on deciding if Income Protection is right for you and your family, reach out to our BlueRock Insurance Advisors today for a free consultation. 

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