One of the only constants that exists is that Australia is an ever-changing place. From economic fluctuations to personal challenges, life can always throw a curveball when we least expect it. Amidst this uncertainty, one thing remains crystal clear: the importance of safeguarding our income. This is where income protection insurance becomes an invaluable essential.
Why Income Protection is More Critical Now Than Ever Before
For younger generations, the economy is not as forgiving as it once was. Building a life is significantly different to how it was back in the day. For example, the housing market has seen substantial growth. For young Australians, the ability to meet and sustain mortgage commitments can be extremely challenging. If anything was to disrupt cash flow, it could have some terrible repercussions.
Another major factor to consider is inflation. This global phenomenon has created an abundance of implications for everyone’s general living, especially throughout Australia. For many, grappling with perpetually increasing expenses is now a regular thing. However, imagine how difficult it could be if your income was to suddenly stop. This is undoubtedly why income protection insurance is more important than ever before.
Ensuring Your Income Protection Insurance Policies Cover What You Need Them To
If the world of insurance is relatively alien to you, you might be stumped by the plethora of options when looking into your policy. There may be things that you are unsure of, but it is vital to ensure it contains at least the following.
● Comprehensive coverage for illnesses and injuries – Your income protection insurance should cover a wide range of possibilities and also include any specific risks you might face due to your employment, hobbies, or lifestyle.
● Flexible waiting periods if you need to claim – Sometimes, we might not want to claim, or we might be desperate to claim. Flexible waiting periods allow us to do it when we actually need to.
● A significant percentage of your income – A good income protection policy should cover around 75% of your income. You should ensure you are paying for a policy that will cover all of your outgoings or debt repayments and sustain your lifestyle.
● A big enough duration of benefits – We don’t like to admit it, but accidents and illnesses may prevent us from working for a very long time. So, it is best to have a policy that can cover you for the period you need.
● Adjustability to changes in your life – Once you have a policy, you don’t want to be stuck with it for the rest of your life. Adjustability is essential so that you can review your income protection policy for any changes in your health, employment, or lifestyle.
A Brief Summary
When disaster strikes, income protection insurance is there to give you a consistent cash flow, cover essential costs, provide rehabilitation support, and, most importantly, provide peace of mind. Without it, you may find yourself relying on your savings or even your family, and either one can have significant, long-lasting implications. The best way to keep a hold of what you have is definitely income protection insurance.
