Insurance in Australia comes in many types, features, and coverage. One of these is the income protection insurance. This provides assistance in covering your expenses in the unfortunate event of sickness or injury that prevents you from working. Based on your policy and with a successful claim, you can get income protection payments for the period when you are unable to work. This is very important for self-employed individuals, start-up entrepreneurs, and basically anyone who depends heavily on their ability to work.
For those who are self-employed, have fixed expenses, and do not have dependents to provide for, getting an income insurance protection may be the ideal option.
There are many types of insurance and with so many things to take into account, choosing the right one can be a challenge. But with these tips and insurance advice, you can find what’s suitable for your needs:
- Consider your own financial situation. Can you pay for utilities and other necessities in case you get sick or injured? Will your savings be enough for everyday expenses? There’s no one-size-fits-all solution when it comes to insurance in Australia, so take a good look at your own circumstances as no one knows your capacity to cover all expenses better than yourself. If you think you cannot handle your expenses without assistance, then it may be wise to get insurance.
- Know how much coverage you need. In general, income protection insurance covers about 75% of your income in case you cannot go to work due to sickness or injury. To know the level of cover that you need, make a list of your standard expenses such as payments for mortgage and/or car loan as well as the number of your dependents, if any.
- Know how much it will cost you. It depends on a lot of factors but in general, your premiums will be based on your age, gender, current health status, pre-existing conditions, occupation, and whether you’re a smoker or not.
- Be honest with your insurer. Some companies require customers to give them a copy of their medical history. You also need to inform your insurer about any life event such as having a child or getting married as this can affect your coverage.
For those who are self-employed, have fixed expenses, and do not have dependents to provide for, getting an income insurance protection may be the ideal option. On the other hand, if you have family members to take care of, a life insurance may be a better deal. But then again, it really depends on your own situation.
Seek insurance advice from a professional to help you better understand the type of insurance that suits your personal requirements. There are a lot of professionals with excellent training and experience who can help you manage your risk appropriately by recommending the best products for your and your family.
Do you know other things worth-considering when it comes to life insurance in Australia? You can share your ideas in the comments section below.