subject: 8 Compelling Reasons to Take Out Income Protection Insurance [print this page] 8 Compelling Reasons to Take Out Income Protection Insurance
We check out 8 of the top reasons to get income protection insurance here.
The bare facts
If you don't have an income, you'll eventually have none of the creature comforts you probably currently enjoy. You may not have a place to live, or electricity, or the ability to buy food.
Government benefits put you below the poverty line
Unemployment benefits and disability benefits paid by the Government certainly go some way towards ensuring that 'the worst' doesn't happen to you. However, if you live on government benefits alone, you'll be living below the poverty line.
You have a chance of becoming seriously disabled during your working life
TheAustralian Bureau of Statistics (ABS) for 2004-2005 show that over 1 million Australians per year need to be hospitalised or need to take time off work due to serious sickness or accidents.
You can't rely on workers' compensation
The majority of serious accidents occur outside the workplace, according to ABS 2001 figures; and even if you do end up receiving a compensation payment it may not be enough, or may be very limited.
Wiping out savings
When you diligently put your savings away every week, you're probably thinking of the holidays and luxuries it will buy one day, not paying rent with it while you're disabled. If you save 10% of your income each year, a 12-month disability will eat up 10 years worth of savings. Income protection insurance can help make sure all those missed pizza and movie nights were worth it!
Change is difficult with kids
If you have children, you probably know what a pain it is simply to switch form eating carrots with dinner to beans. Larger changes make life even more difficult - if your kids have to move house, change schools or give up luxuries because of your disability, life becomes much more stressful for everyone. Income protection insurance helps relieve that risk.
Possibility of permanent financial consequences
If you have to declare bankruptcy because of a transient health problem, the consequences of that will follow you around for 7 years or so if not forever.
For self-employed people, it protects your employees
Even if your employees are casual, the loss of their job due to their boss's (your) illness could be devastating to them. Income protection insurance helps you to protect the families of your employees, as well as your own.
welcome to Insurances.net (https://www.insurances.net)
