Income protection insurance is an insurance for the people who are unable to work. There are some people who lose their jobs due to injury or sickness. This I.P.I policy benefits them. It can pay them a percentage of their regular income.
In Australia an I.P.I policy holder can get 75% to 85% benefit of his regular income. The income protection policy can cover a self-employed person and it has more benefits.
How can Income Protection Insurance help you?
1. Income Protection Even After Disability
Accidents or illness are the worst parts of your life. But, these misfortunes can happen any time. Due to this, you may lose your job. Worker’s compensation may provide you with a limited amount of money. But, income protection policy can give you 75% to 85% of your regular income. This income will lessen your stresses. You won’t be worried about your monthly costs and bills.
2. Tax Deduction
Australian Taxation laws allow you to claim tax deduction on your income policy. Other policies may not provide you with such facilities. Except in the case of superannuation, you may get a tax deduction on your policy.
3. Protects Your Children
If your children is small then you can get benefits from this income protection insurance. When you lose your job you may not take care of your child. In that case, this insurance policy can help you.
4. Supports You In Redundancy
You may become unemployed for few months. In this state of redundancy, income protection policy can
help you. You can pay your bills without being worried.
5. Easy To Claim
Income protection insurance is easy to claim. There are no complex steps to claim your policy. After your unemployment, you may not have to wait for a long time to get your benefits.
6. Option For Customization
Income protection insurance can be customized. You can shorten or extend your policy’s duration (up to 2 years).
Over 30 % people can’t support themselves after losing their jobs in Australia. Income protection insurance can truly be beneficial for them. It can protect you and your family. So, you can’t ignore the importance of this insurance.