A recent survey by Aviva revealed that 90% of families are living without income protection insurance. This is coupled with the fact that many families are relying on a sole income earner to provide financial stability and can’t afford to lose their entire income should unforeseen circumstances arise that would prevent the sole or main income earner from working.
Income protection insurance is something that many people hope they won’t need or assume will be covered by their superannuation. Neither of these statements is necessarily true. As we all know, accidents can happen only too easily and it is worth checking the fine print on your super because the disability segment of most superannuation funds is often insufficient to fulfil the long term needs of the average family.
Having income protection insurance means that should you be injured or diagnosed with an illness that will impact your earning ability, you can still receive a portion of your salary for a designated amount of time, within the limits and conditions of the policy. Not having income protection may leave your family exposed and vulnerable to financial hardship should something unforeseen prevent you from working.
The rate of premium you will pay for income protection insurance depends on certain lifestyle factors and whether your occupation and lifestyle is considered high or low risk in terms of the potential for life threatening injuries or permanent disability. There is often quite a large variation between policies so it is a good idea to have a look around and compare quotes before purchasing an income protection insurance policy.