Questions You Might Have About Income Protection Insurance

Not all of us are aware that there is a thing called income protection insurance. This insurance once you have availed of it, will provide you with financial assistance if you become ill or you have been involved in an accident that hinders you from working.

Income Protection Insurance
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Most of the common illnesses and accidents that could temporarily or permanently prevent you from working are covered by income protection insurance. However, it does not cover the situation of you being terminated or laid off from your work. It is only insurance that covers sicknesses and accidents.

How does it work?

If you need income protection insurance Australia has many agencies you can reach out to. You would be able to make claims when you lose your income because get sick or hurt and can’t work. This policy will cover your expenses and provide you with a portion of your income until you have recovered from your sickness or injury and you can come back to work or until it is time for you to retire, at the time of your passing, at the termination of your policy or when the claim period for your policy expires, whichever of these situations happen first.

How many times can I file for claims?

As long as you are still injured or sick and you will not be able to report back to your work, you would be able to make as many claims as necessary provided your policy is still in effect.

When will I need this type of insurance?

Most employers provide paid sick leave for their employees but this type of leave might not be sufficient or enough for those diagnosed with a severe disease or has been involved in a grave accident that would need a long time to recuperate. Not all companies however, would pay their employees sick leave benefits for longer than a year.

If your hobbies include participating in extreme sports or your family medical history might be bleak and you are at risk of developing an illness that is hereditary, find out about what your employer will be able to offer you if you avail of a sick or medical leave for a prolonged period of time. If the benefit would not be able to cover your necessities if and when you do need to take time off, you need this type of insurance. All the more if you are self-employed or working as a freelance and you do not have any benefits for when you become sick.

How could I avail of this insurance?

The best way to avail of this insurance is to seek the professional and expert advice of an insurance broker or an independent financial consultant especially if this is your first time to purchase an insurance. A broker or a consultant would be able to explain to you all the specifics to ensure that you make the best decision.

Since an insurance will be a major investment, think about it and consider if the cons outweigh the pros instead of deciding on it carelessly since it will definitely impact your finances.