Unfortunately, good health doesn’t come with a lifetime guarantee and life doesn’t always go to plan. Every day, we hear of families struck by illness or injury, though it isn’t until someone we know is affected that we realise how difficult it can be, both emotionally and financially.
While you can’t prevent a major illness or injury from happening, you can ensure you and your family would be looked after if it was to ever occur. This is where insurance comes in, giving you peace of mind and financial security when you need it most.
So, why have income protection?
While there are many reasons to seek a personal insurance policy, here are the two main reasons:
1. Income protection provides ongoing quality of life
One of the biggest concerns we all face is how our bills would be paid if you were instructed to take time off work to recuperate from an accident or injury.
Having an income protection policy in place means that you don’t have to worry about the implications of losing your income. It reduces the stress that may be placed on your family of how you will pay your bills and provide money for day-to-day expenses. Many income protection policies can provide up to 85% of your gross income; as well as super and mortgage payments.
2. Income protection provides peace of mind
Having to worry about where your next paycheck is coming from is always stressful, so having income protection that provides peace of mind to you and your family allows you to focus on recovery and rehabilitation.
Karen and Mark are 42. Mark is a builder earning $200,000 per year and Karen hasn’t worked since they had two children aged 10 and 8, but used to work as a marketing professional. They live in inner Brisbane in a house valued at $1.45 million with a mortgage of \$500,000. Both children are at private schools. On Mark’s income, they are able to comfortably afford living expenses, school fees and the mortgage.
While driving home from work one evening, Mark is in a serious car accident which results in him being rushed to hospital. He ends up with a broken leg and is in a wheelchair for three months.
His income protection policy is activated and Mark receives 85% of his gross income for the three months he is unable to work. This allows him to focus on rehab and recovery knowing his expenses are being taken care of.