Income Protection – Benefit from it in 4 Ways
Are you the sole breadwinner in the family? If yes, did it ever occur to you how your family would survive if you were unable to work? This may not happen in the near future, but it pays to be prepared so that this will not catch you by surprise. In fact, in Australia alone, about 60% of families with dependents will run out of money if the sole breadwinner becomes incapable of work.
Although it’s easy to say that you are secure in your job right now, accidents or illness can strike at anytime, hence you should be prepared for the worst. What if an illness requires costly treatment? Or if your injuries require a lengthy recovery? How would you and your family be able to pay for your medical expenses and support your basic needs? It can be quite frustrating if you resort to securing a loan for this, or worse, sell assets and other valuables just to have enough money to live by.
To avoid doing any of these, you must protect your ability to earn an income immediately. Now, you might say, “What’s in it for me if I purchase an Income Protection insurance?”. Listed below are the four ways on which you will benefit from Income Protection insurance.
1. If you become incapable of work due to sickness or accidental injury, you are eligible to receive 75% of your pre-tax income from your policy. Without this, you’ll rely only on your health insurance.
2. Loss of income can be synonymous to stress, especially if you’ve got a mortgage and other loans. Typically, Income Protection provides you with peace of mind, knowing that in difficult times like this, you’ve got something to turn to that can help you meet not just your families living expenses but your personal obligations as well. Now, you can focus on recovering, while the payout you receive from the policy takes care of all your financial worries.
3. Without Income Protection, your savings can easily be depleted, considering the high cost of medical expenses these days. Get yourself covered to enjoy financial assistance right when you need it.
4. How about Tax Deductions? Yes, this does help reduce the amount of tax you pay. So if you keep on paying high income tax every year, consider purchasing a policy that will help you not just in securing your income but also in reducing your Income Tax.
You may have stopped earning due to some inevitable reasons like sickness and accident, but with Income Protection coverage by your side, you’ll never have to worry where to get the financial help that you need. So, go and get yourself covered today!