Income Protection Insurance
Income protection insurance is an excellent way to make sure your regular
monthly bills and expenses will be paid in the event you become ill or
injured and unable to work. This type of insurance pays up to 75% of
your regular income and no one who is working for a living can afford
to be without this type of insurance.
Who do we recommend for income protection insurance?
This is one of the most common questions we get asked - where should people go for the best income protection insurance?
After much research, we found that X-Life stands way out ahead of the competition. Here are the major reasons we recommend X-Life over other Australian companies for income protection insurance:
- Instant cover available
- Easily compare 500+ policies & options
- Save with a 20% rebate
- Easily protect your income should you suffer a sickness or accident and be unable to work
Head on through to X-Life now and find out for yourself why we recommend them so highly!
Who needs income protection insurance?
Anyone who earns a wage or salary and is supporting themselves or
their family should carry an income protection policy. Health insurance
will pay your medical expenses, but how will all your other expenses
be paid? Who will cover the car payment and the mortgage if you’re
suddenly unable to work? Who will pay for grocerie when you have suffered loss of incomes? Income protection
insurance is the answer.
What typically does an income protection insurance
policy cover?
This policy provides regular payments to you, as if you were
still getting a paycheck, if you become injured or ill. When you buy
the policy, you choose how long you’ll have to wait after the injury/illness
occurs before the insurance will begin paying you. This enables you
to exhaust any sick leave or other time-off-work benefits you may
have before turning to this insurance.
Also, an income protection policy will usually pay your superannuation
contributions, and many automatically index for inflation each year.
What typically does an income protection insurance policy not cover?
Income protection cover does not take care of you unless you are
actually too ill or injured to work. It does not pay out forever—when
you take out the policy, you choose how long the benefits will be
paid to you, generally a year or two. Most companies won’t continue
your income protection policy if you are over 60. Also, if you are
a small business owner, income protection insurance will not cover
the expenses to keep your business running while you are recovering.
Additional insurance products that policy holders might need
in this area
If you own a business, it’s wise to carry business overheads insurance,
which will pay the usual operating costs to keep your business afloat
while you are unable to work. You may also want to carry a trauma
insurance policy to make sure you’re well-covered in the event a traumatic
event such as a heart attack or stroke. And don’t forget life insurance,
to protect your family in the event of your death.
Additional coverage for an income protection insurance policy
Illnesses or injuries covered can vary by company and by
policy. Some offer options that will take care of you while you’re
out of work after cosmetic surgery, in a rehabilitation program,
or on unpaid leave for maternity, sabbatical or other reasons. Some
policies will even cover you if you can continue to work, but at
a reduced ability than what you could do before your injury or illness.
Other optional benefits include paying for the lost income of a
family member who must leave work in order to care for you.
What will income protection insurance typically cost?
The premiums for this type of insurance vary not only by insurance
company but also by what benefit options you choose, how high your
income is and how much you’ll need to replace with payouts from the
policy, whether you buy the policy on your own or through your employer,
etc. Expect to pay at least $10-20 per month.
Recommendations
This is a common question we get asked - Who should I
choose? You can see who
Insurance Compared recommends for life & income protection insurance
here.
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