This article explains some of the supplementary types of cover that could be included under an income protection policy.
If you’re working and haven’t yet reached the point of financial independence then income protection insurance should be on your radar. As the name implies, it can help you protect your greatest asset – the ability to earn an income.
At the heart of all income protection policies is the promise to pay the policy owner a regular benefit, usually 75% of their normal income, if they are unable to work due to accident or illness. Payments are made after an agreed waiting period and continue until either the policy owner is able to return to work, or until the end of the agreed benefit period.
Core and supplementary benefits
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How would your adult child and their family survive financially in the unfortunate event of an accident or an illness that prevented them earning an income for an extended period of time?
On average, only ...% of debilitating injuries occur at work or are work-related.
In 201./.. there were ............ compensation claims made for serious work-related injuries in Australia.
The average time it took for a worker to return to work due to a serious injury rose by ... to more than ....... weeks.
In 2.... the median compensation payout for a serious claim was just $..........
This article emphasises the likelihood of needing personal insurance to cover even simple living expenses – not to mention meeting other financial responsibilities.
If you were paid the average annual wage of $..........., you could potentially earn around $............... over a 40-year working life. You would use this money for daily living, for holidays, to accumulate assets like a house and car and to save for your retirement. Being injured or taken ill, for only a short period, could severely affect or even cancel some of these plans.
What would you do?
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