Video Transcript
What would you do if you couldn’t work due to injury or sickness? Bills, groceries, the mortgage – where would you find the money for any of them? Things could get stressful really fast. Income protection insurance can act as a financial safety net.
It provides a regular benefit – reflecting a percentage of your income – if you are unable to work for an extended period of time and you’ve served out your waiting period. These payments can help to keep your bills paid while you recover. Some of us might have a small level of income protection cover via our super fund, but when so many policies take a one-size-fits-all approach – you might find they’re not the right fit for your needs. Some funds do not provide income protection at all so check with your fund if you’re not sure.
It’s absolutely crucial to read the fine print to understand what type of cover is right for you. That’s where Compare the Market comes in, to help you compare some of Australia’s largest insurance brands side by side, in a matter of minutes. Whether you’re a high-income earner or a part-time worker, we’ll show you a range of options to help you look for one that suits your needs and budget. Before you jump in, our experts have these tips to support your decision-making.
First, understand what you need cover for and how much cover you need. Everyone’s needs are different so spend some time learning what income protection can do for you, and what cover options might be suitable. And make sure you check the waiting period. Different policies may come with different waiting times for claiming a benefit.
Common options include 30, 60 and 90 days, but make sure you find a policy with a waiting period that works for you. The same goes for the benefit period; some policies might pay a benefit until typical retirement ages , while others might only pay a benefit for two years. Depending on your life stage, that’s an important point of difference. Having your options laid out side by side lets you identify these differences quickly and easily, and that’s why comparison is key.
So get to it! You can compare income protection insurance policies today, with Compare the Market.