What is the purpose of life insurance that provides financial security?

If you become unable to work due to sickness or accident, income protection insurance may help you by replacing a portion of your monthly income. It provides a tax-free monthly benefit and continues to do so until you rehabilitate and are able to find work, until the insurance expires, or until you decide to stop taking the benefit. In the event of a financial emergency, income protection insurance will help you and your family stay afloat financially. Welfare benefits, also known as redundancy insurance, should not be confused with income protection insurance since it provides a totally different sort of protection.

Who would benefit from having income-protection coverage?

The vast majority of individuals! Unlike other types of insurance, such as life and critical illness, which are often reserved for those with debt (such as a mortgage), income protection insurance is a viable option for practically everyone. If you can't work, you'd struggle to pay your bills. That's because most people have steady jobs and regular income.

For starters, you should consider about the following things:

• If you were unable to work, could you or your family still meet your usual expenses?
• If you had to miss work due to illness, would your company provide any financial assistance?
• If you were unable to work due to illness, would you be eligible for any kind of state assistance?
• What would you do if you couldn't work? Do you have any money saved up?
• If you were to lose your job, could you and would you be willing to make changes to your lifestyle to lower your normal expenses?

There are many factors to consider when determining whether or not you need income protection insurance Australia, so call one of our helpful consultants at 0476 011 111 for more information.

How does life insurance that provides financial security work?

The degree of protection you have determines how much money you'll get each month in benefits. While you may choose your own percentage, normally it's up to 60% of your overall monthly earnings.

Cover term: The length of time you want to be covered. This is normally a set period of time, such as 25 years, but it may be any number of years that you anticipate working full-time. Income protection insurance will begin paying your monthly payment if you get sick and are unable to work during that time period.

Payout period: The length of time an insurance payout is provided if you are disabled due to illness. Many individuals want the money to last until retirement, but if you just need it for a few years, you may choose two or five years instead of 10.

Waiting period: The amount of time after you've stopped working before receiving income protection insurance benefits begins. If you're working and get sick pay, you don't need your insurance to begin paying immediately. This product feature may be a little perplexing at times. When it comes to delayed compensation, self-employed persons have fewer options since there is no financial backing from a company.

Incapacity is defined as the inability to work, which entitles you to your income protection insurance payout. The simplest and most common definition provided by insurers is referred to as "own occupation," which implies that if you are sick and unable to work, you are eligible to get benefits. If you get sick and are unable to perform your existing work duties (or any job at all), your insurance company may give tougher criteria like "any vocation," in which case you are not eligible for your insurance reimbursement.

If you need assistance, don't hesitate to reach out to us. Request a callback from one of our knowledgeable insurance broker Brisbane consultants by calling 0476 011 111. We'll provide you the information you need and answer any questions you have so you can safeguard the people and things you care about most. We hope to have the opportunity to speak with you shortly.