Income protection insurance provides you with a replacement income if you are unable to work because of an injury or illness. Income protection insurance can also provide you with assistance when you’re ready to go back to work.
Typically income protection pays a monthly benefit of up to 75% of your income while you are incapacitated, helping you to cover your living costs such as utility bills, rent/mortgage payments and household expenses.
Basically income protection offers income replacement while you’re unable to work so that you don’t have to dip into your savings or investments. It’s reassuring to know you have that back up and are free of unnecessary financial stress and strain during your recovery.
So what happens when you’re ready to get back to work but are still in the process of rehabilitation and require special assistance to re-enter the workforce?
If your income protection insurance offers rehabilitation benefits option, you may be eligible to receive an additional 50% of your monthly amount insured if you participate in a rehabilitation program.
The rehabilitation program must be approved by your life insurance company and must be essential for your ability to return to work. Rehabilitation benefits cover the costs of approved rehabilitation programs, including vocational retraining and special equipment or workplace modifications. The benefits are payable up to a maximum of 6 months and expenses must be incurred whilst you’re receiving income protection benefits.
If you think income protection insurance is an unnecessary extra expense and something you don’t need, then consider these interesting statistics:
- The majority of claims made are by people under age 50.
- 17% of those claims made are people under the age of 35.
- Another 17% of claimants are in the 50-54 year age group.
- Followed by 15% in the 45-49 year age group.
What these statistics show is that injury and illness are just as likely to happen to young adults and people approaching midlife, with can have a serious impact on their ability to continue earning an income.
Income protection insurance with rehabilitation incentives provides valuable benefits helping you re-enter the workforce sooner and getting your life back on track without the financial pressures.