Income Protection is designed to cover you temporarily if you are unable to work due to injury or illness, so that you’re able to maintain your day-to-day living expenses during your recovery period.
Generally speaking, Income protection will cover you for up to 75 percent of your normal income, until such time as you’re able to return to work – or at the end of the prescribed benefit period as noted on your policy.
While there are some policies that offer a higher percentage of cover, you should check the product disclosure document (PDS) of any insurance policy you are considering before making a decision.
What Are My Options When Choosing Income Protection?
Depending on which insurer you choose, your income protection policy can vary greatly. However, it is common to be able to tailor your insurance policy according to factors such as:
- Waiting period
- How long the insurance payments will last (benefit period)
- Policy type (e.g. Indemnity Value or Agreed Value)
- And in some cases: Additional benefits, or ‘add-ons’, like hospital or accident benefits, and nursing care
Things to Note about Income Protection
Certain factors can influence the cost of your policy, for example (but not limited to):
- Your age
- Certain health behaviours (such as smoking)
- The risk of your occupation
Things that affect your premium:
- Waiting period
- Benefit period
- Type – Agreed vs Indemity
Can You Afford To NOT Have Income Protection?
While nobody expects an interruption to their income as a result of an injury or illness; accidents and sickness can strike when you least expect it. With income protection, at least if your situation does change temporarily, you will be able to continue to pay your bills and support your family.
At comparethemarket.com.au, we can help you find income protection insurance to suit your unique situation. You’ll be able to compare quotes online with a number of Australia’s insurers, and review the policies that fit your needs.