Can I afford income protection insurance?
7 October 2021
It’s a common misconception that income protection insurance is only beneficial for those who are wealthy. But this is a myth that needs to be busted. It doesn’t matter what your lifestyle is and how much you earn, income protection can help provide financial support when you’re unable to work due to serious illness or injury.
Still deciding whether income protection insurance is worth the investment? Consider this: have you thought about how you’ll pay for ongoing household expenses, mortgage repayments and any other ongoing expenses if you’re forced out of action due to serious illness or injury? Income protection can help keep life going while you focus on getting back on your feet. Furthermore, you can also choose the cover that’s suitable for you.
What is income protection insurance?
Income protection insurance can help you to keep life going if you’re unable to work due to serious illness or injury, allowing you to maintain some income while you focus on your recovery. You can get up to 75% of your average income of the past year, with a maximum of $10,000 a month to help you stay on top of your financial commitments.
What’s more, there are no restrictions on how you choose to spend the benefit payments received. You’re free to spend the money anyway you want and prioritise the bills and expenses that you consider more important over others. Whether that’s mortgage repayments, education expenses, childcare fees or nursing costs to help you in your recovery. Suncorp Income Protection also has a Recovery Support Benefit option, which provides extra financial assistance for 2 months if you’re confined to bed as a result of serious illness or injury.
Plan for the future
No one knows what the future holds. The ongoing COVID-19 pandemic has further reinforced the fact that the future is unpredictable, and it serves us best if we’re prepared. Considering what might happen if serious illness or injury strikes out of the blue is an uncomfortable thought, but a real possibility. Irrespective of your age, lifestyle or income, anyone can be impacted by unexpected circumstances.
The Australian Institute of Health and Welfare notes that on a given day, about 100 Australians suffer from a stroke. This could be serious enough that they are unable to work. Statistics also show accidental falls are some of the most common cause of serious injury. As the data suggests, you might take all the precautions possible and be free from any health complications, but if the unexpected happens, and when it does, income protection insurance can help offer a financial safety net.
But I don’t earn enough to get cover
A common misconception is that income protection is only for the wealthy. Irrespective of how much you earn, your income is the primary source that you and your family may rely on to pay the bills. What if, one day unexpectedly, you were to lose it? And what’s worse, you don’t have a plan B to supplement that primary source of income.
It’s important that you have a contingency plan in place just in case the unthinkable happens. You can think of income protection insurance as that contingency plan. Even if you have sick leave entitlements as part of your work arrangements, it’s likely that there comes a time when you’re unable to work for a longer period than your sick leave entitlements cover. What would you do then?
Is income protection right for me?
Irrespective of your life stage, income protection may be able to help keep your life going if you’re unable to work because of sickness or injury. For a growing family, there is the added pressure of raising kids and paying for childcare, while also balancing mortgage repayments. For singles, there is ongoing rent and other household expenses to cover. As a couple, you might have just bought your first home or family care and are getting into the rhythm of paying off the loans. An unexpected illness or injury that forces you out of work can suddenly interrupt that rhythm and throw your life into disarray. But it doesn’t have to.
Income protection insurance could be a contingency plan to help ensure your life doesn’t go into disarray if you’re impacted by serious illness or injury. It doesn’t matter how much you earn and what your lifestyle is, there are flexible cover options available to suit your needs.
- How income protection can help you and your family in tough times
- Compare income protection policies
- When is the best time to get income protection?
Suncorp Life Insurance products, other than in some circumstances the Redundancy Benefit, is provided by TAL Life Limited ABN 70 050 109 450 AFSL 237848 (TAL Life) which is part of the TAL Dai-ichi Life Australia Pty Limited ABN 97 150 070 483 group of companies (TAL). TAL is not part of the Suncorp Group. TAL uses the Suncorp brand (part of the Suncorp Group) under license. Any advice on this page in connection with the Life products is general in nature and is provided by Platform Ventures Pty Ltd ABN 35 626 745 177 AFS Representative Number 001266101 (PV). PV is part of the Suncorp Group and an authorised representative of TAL Direct Pty Limited ABN 39 084 666 017, AFSL 243260 (TAL Direct). General advice does not take into account your individual needs, objectives or financial situation. Before you decide to buy or to continue to hold a Life Products you must read the relevant Product Disclosure Statement. The Target Market Determination (TMD) for the product is available on our website.