Income Protection Insurance
Income Protection provides cover for a portion of your income if you are unable to work for a period of time due to sickness or injury. Some policies also cover you if you become involuntarily unemployed such as being made redundant.
Income protection insurance differs from life insurance in that it is designed to help you meet the costs of living while you are out of work, rather than providing you with a lump sum payment if become totally and permanently disabled, or a payout to family members should you pass away.
By having income protection insurance, you can usually receive up to 75% of your salary in monthly payments, which can reduce financial stress and help you to meet your financial obligations until such time as you are able to return to the workforce. Some policies will also allow you to take out additional cover to enable a portion of the payment received to be directed to your superannuation account.