Are you worried about how you’ll cope financially if you’re unable to work due to an illness or injury? Personal insurance, including income protection cover, can provide peace of mind by protecting your income during difficult times.
What is Personal Insurance?
Personal insurance is a type of insurance that provides financial protection to you and your family in the event of illness, injury, disability, or even death. It includes various types of cover, such as life insurance, trauma cover, and income protection cover.
What is Income Protection Cover?
Income protection cover is a type of personal insurance that pays you a monthly benefit if you’re unable to work due to an illness or injury. This benefit is usually a percentage of your pre-tax income and can help you cover your expenses during the period of time you’re unable to work.
How Does Income Protection Cover Work?
Income protection cover can vary in terms of waiting periods, level of cover, and monthly payments. It’s important to read the product disclosure statement (PDS) carefully and understand the terms and conditions before taking out a policy.
The waiting period is the period of time you have to wait before you start receiving the monthly benefit. This can range from 14 days to several months, and a longer waiting period can reduce your insurance premiums.
The level of cover refers to the maximum amount you can receive in monthly benefits. This amount is usually a percentage of your pre-tax income and can be adjusted to suit your needs.
Income protection cover is tax deductible, meaning you can claim the premiums as a tax deduction. However, any benefits you receive are subject to tax.
Other Types of Personal Insurance
Life cover provides a lump sum payment in the event of your death, terminal illness, or permanent disablement.
Trauma cover provides a lump sum payment if you suffer from a specified illness or injury, such as cancer or a heart attack.
Why Do You Need Personal Insurance?
Personal insurance can provide financial security for you and your family during difficult times. If you’re unable to work due to an illness or injury, income protection cover can help you maintain your lifestyle and cover your expenses.
It’s important to consider your personal circumstances and financial goals when deciding on the level of cover you need. Speak to a financial adviser to get expert advice on the type and amount of cover that’s right for you.
Make an Appointment with Sage Financial Advice
If you’re interested in learning more about personal insurance and income protection, book an appointment with Kerry or Joel at Sage Financial Advice. They can help you understand your options and find the best solutions to fit your financial situation. Don’t leave your financial future to chance, book your appointment today.