Your home, car, food, clothing, children’s education – all depend on your income. That’s why for many the loss of income resulting from the inability to work due to sickness or injury can cause serious financial hardship.
When you think of how your lifestyle could be affected by losing your income, it simply doesn’t make sense to overlook this important cover. The cost of cover is a small price to pay for long term income security, and may be fully tax deductible.
Income protection insurance will pay a regular income to a person if they are disabled by a sickness or accident (effectively replacing their lost income). The maximum benefit covered is usually 75% of gross income after business expenses (for the self-employed).
The function of income protection insurance is to: