Buying a house is an important milestone for anyone, and an exciting one at that. Whether you’ve got your own private pad or are purchasing a home for your family, you want to make sure that this purchase doesn’t compromise your financial security in any way. Taking out income protection insurance is one way to do just that.
What is income protection?
Income protection insurance is a form of insurance that will pay out an income for you, should you ever be unable to work due to illness, an accident resulting in short-term disability, or even the development of a long-term disability. No one ever wants to consider that this will happen to them, but if the worst should happen, you want to make sure that the property you worked so hard to purchase doesn’t get lost as a result. Future expenses may pile up, such as premiums on your medical insurance or personal health costs that might also accrue. To make sure you can stay on top of your finances, income protection is a smart way to go.
How does it work?
You might have also heard of income protection insurance as disability insurance or sickness insurance, as it covers you for both of these potential eventualities. Usually, the monthly benefits will continue until you are able to return to work or until death, so there is no need to worry about it running out in the long-term. There are other options of income protection and disability benefits that focus on short-term aid, where you can pay reduced monthly premiums, should that be a more suitable option for your circumstances.
The amounts you pay are normally charged monthly and will result in monthly benefits from the insurance company that equal your previous income, should an accident or illness befall you. You can rest easy with the peace of mind that if something unexpected should happen, your family and your property will be protected and you can manage your new situation with as much financial security as possible.
Is it right for me?
If you have a mortgage or any other major outgoings that you can’t risk missing payments on, then it’s worthwhile to consider disability insurance. It could also be especially useful if you don’t have a huge amount of savings or a strong emergency fund to fall back on. The right premiums and benefit amount will be calculated according to your own occupation and taxable income, so it’s likely you’ll be able to find the right plan for you. Remember to always seek unbiased advice from a financial advisor or similar if there is anything that you are unsure of.
How do I find the right insurance company?
If you’ve decided that disability insurance is the right way for you to, according to your own occupation and needs, then it can be tricky to know where to start looking. Disability income insurance is offered by a range of insurance companies, and the premiums and disability benefits can, of course, vary widely.
To help you find the right long term disability insurance, try comparing income protection insurance with iSelect. You can easily compare plans and premiums at a glance, and read more about why income protection is so important and who it best suits from the free, trustworthy advice on their website.
With this overview of income protection insurance and how to go about comparing insurance companies, we hope you’ll be able to find a plan that works for you and go about your life confidently, without fear of something unexpected causing a domino effect and damaging the life you’ve worked so hard to built.
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