There are a number of life insurance products, including income protection, which may cause confusion to those who have never used them before and even to a few who have. That’s why these policies often go unutilised. Income protection will potentially replace as much as 75% of your current income, with another 10% towards superannuation, if you should experience severe illness or injury resulting in an inability to work. Not only will this provide a number of benefits and advantages, but you never want to discover what hardships may occur if you were to put off such protection until it is too late to avoid serious financial problems.
Mortgage
Income protection insurance will help you to keep up with your monthly repayments, some of which are extremely important, such as the mortgage taken out on your home so that you have a roof over your head. In fact, 46% of respondents were found to have gotten their policy in the first place because they took out a large mortgage and did not wish to leave it up to chance if anything were to happen while one or more spouses is working. A mortgage is one of the largest and fastest acquired debts a person will ever take on in their lifetime, and it can take decades to fully pay off the total, leaving you with a valid reason to protect your interests.
Debt
Monthly repayments such as credit card bills, car loans, and more will not go away simply because you no longer have the income to cover your expenses each month. A protection policy will help you to avoid accumulating even more debt as you attempt to get back on your feet after a serious injury or illness takes you out of work for a long period of time. This policy will ease the monthly pressure to keep all of your debts paid off on time, and this will indirectly keep your credit from dropping without warning and then taking a long period of time to recover.
Recovery
Once you find yourself trapped in a situation where you must recover from a serious illness or injury without warning, this insurance policy will help you to focus on recovery and setting up your eventual return to work. You should never find yourself caught in a battle between recovering and finding the money to cover your bills, especially if you have no other income brought into the house without your own work. The result of this type of protection is that you will spend a small monthly premium now to save yourself thousands in the future, or more specifically, to stop yourself from losing many of the assets you love such as your home, car, and more.