Joshua Galyon
We all know how much life’s journey can be full of bumps, twists, and turns. Unexpected challenges can arise at any given moment, so the key is to prepare the best that we can. In today’s world, one of the most significant challenges we can face is the potential loss of income due to illness, injury, or unforeseen circumstances. Without an appropriate safety net, there is always a chance that we’ll find ourselves grappling with financial uncertainty.
Nobody wants to picture a scenario where something prevents them from working for an extended period of time. The idea of being unable to make mortgage payments, keep up with bills, and struggle to afford life’s necessities, let alone luxuries, is simply too hard to bear. Without safeguarding yourself with the cushion of income protection insurance, this scenario becomes a possible reality. So, how can we ensure financial security no matter what?
Knowing what a good income protection insurance policy looks like
A good income protection insurance policy is a lifeline that promises you will never have to endure financial hardship due to illness or injury. In Australia, the cost of living isn’t always in our favour, so having a robust insurance policy should be at the top of everyone’s list.
A comprehensive income protection insurance policy typically covers most of your income, allowing you to keep up with your outgoings and maintain your lifestyle, even when you cannot work.
You should find a policy that offers flexibility in waiting periods (how long you wait until you can make a claim) and benefit periods (how long you can claim for) so you can adjust it to suit your exact needs.
Most importantly, ensure your policy is the right one for you! Like most things in life, income protection insurance policies don’t come in one-size-fits-all. You need to regularly assess and review your policy to ensure it aligns perfectly with your lifestyle, outgoings, and financial aspirations. It might seem complicated to do, but it isn’t. A good insurance provider will be able to tailor your income protection insurance to cover your rent/mortgage, education expenses, daily living costs, and anything else you can’t live without.
Finally, how to know when to make a claim
As you would imagine, knowing when to make a claim on your income protection insurance policy is a vital aspect of maximising its benefits. Of course, everyone’s policy will be different, and if you’re paying higher premiums, you might not need to worry about making a claim whenever you can. However, if you want to ensure your premiums stay low, it is best only to claim if illness or injury is going to keep you out of work for a prolonged period. It is also important to remember that when you do make a claim, do it promptly. Different providers will require different evidence, and it is a good idea to avoid any delays where possible.
