The first thing that most people think of when it comes to income protection is that it is a useful safety net that can protect your income. However, there are more benefits that come with it that can make it more than just a safety net. Here are 6 benefits that come with income protection you may have not known about.
1. Potential tax benefits
Who doesn’t like a tax kickback? Taking out an income protection policy with an insurer can open doors to potential tax benefits that can be claimed as a tax deduction of the cost of your income protection premiums. The catch is not available for income protection insurance policies that have been taken through a superannuation fund.
2. Get partial disability cover
Insurers differ in terms of what they include with their income protection policies. It is possible to find a policy that comes with some extras such as a partial disability benefit. This will cover you if you become partially disabled, but still able to return to work on a part-time basis. You could receive a reduced monthly benefit to help you take care of your needs. It is advisable to speak to your insurer to see what is applicable to your situation.
3. You can have your premium waived
No matter how prepared you are life can throw some major curveballs. This could be in the form of losing a job. Finding a new job can be a job in itself as it consumes your finances. Most insurers will allow you to freeze your income protection cover and premiums. This means you do not have to lose out on your cover and you do not have to pay premiums in the time where you need your finances the most.
4. Get cover when you take care of a sick child
According to research by Lifewise, 31% of Australians had income protection insurance. This can leave many Aussies exposed to emergency expenses such as your child falling sick. There will be some incidents in which you will have to take some time off work which means a temporary cut to your income. Some income protection insurers can offer an optional extra to take care of medical expenses in the form of a cash payout to take care of your expenses.
5. Peace of mind that you are covered
Being able to rest assured that you are covered is a priceless feeling. Income protection can offer you protection from unexpected expenses that come with not being able to work due to falling ill or sustaining an injury.
6. Being able to take care of your rehabilitation expenses
Sustaining an injury or illness that puts you out of action can quickly increase the medical bill that can take a huge chunk out of your budget. Having an income protection policy can help you cover medical and rehabilitation costs to get you back to tip-top shape.