Why Income Protection Insurance Is Important

If you rely on a wage to live, income protection insurance can help cover your costs and protect your lifestyle in the event of a injury or sickness.

Income protection insurance, also called disability or salary continuance insurance, replaces your lost income if were unable to work due to illness or injury.

"Income protection insurance is about protecting your way of life so that you and your family can concentrate on the important recovery phase," said Amien Sym, a moneyQuest insurance adviser.

Insurance payments can help cover increased medical bills and allow for greater financial security, Sym added.

Waiting Periods

Just like health insurance, there is often a period of time before you can make a claim on your income protection insurance. However, an income protection waiting period refers to the length of time the accident or sickness has to keep you off work before the income protection benefit period starts.

The waiting for sickness period starts on the day the sickness is diagnosed and for accidents the waiting period starts the day the accident occurred.  Therefor it is important that this date is identified ASAP as it is one of the vital details in any income protection claim. 

You get to choose a waiting period when you select your level of cover. It can vary but it is usually between 30 and 90 days. A waiting period is part of every income protection insurance policy in Australia.

How to Choose the Best Cover For You

“Insurance decisions aren’t easy to make. There is a lot of information to digest and consider,” added Sym.

An experienced insurance adviser can help you thru the insurance maze. From the early stages of gathering information, to choosing an appropriate policy, right thru to completing the details on the application form, an insurance adviser can be a powerful ally in the search for the right insurance policy.

As with any major financial commitment, it's best to consider your individual situation and seek professional advice. Even the most experienced insurance experts must spend time understanding your individual situation and considering all the different insurance products available before making a recommendation.

Help is only a phone call or click away. You can compare the main types of life insurance, such as life cover and total and permanent disability cover at the ratesonline.com.au web site. You can also make a no obligation appointment with a professional insurance consultant by filling out the online request for insurance information form.

General advice warning
This information (including taxation) is general in nature and does not consider your individual circumstances or needs.  Do not act until you seek professional advice and consider a Product Disclosure Statement.

moneyQuest Insurance Services Pty Ltd is a Corporate Authorised Representative of Millennium3 Financial Services Pty Ltd ABN 61 094 529 987 AFSL 244252