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Pay off your bills when you are not working
Not being able to go to work is due to circumstances that are out of your control can keep anyone up the night, especially when you have bills to pay. According to a study by Deloitte, 6 million Australians are at risk of not being able to pay off their household bills or put aside savings to help them when they need it the most. Having an income protection policy can help you take care of everyday expenses and debt that could affect your credit score.
Take care of your rehabilitation bills
Sustaining a critical injury or falling critically ill can be costly when it comes to paying off medical bills or going to a rehabilitation centre. This can have a huge impact on your loved ones who want to be there for you physically and financially. Having a policy in place can alleviate the stress of finding ways to help you recover. This can also be beneficial for people who have a spouse and want to hire someone to help them around the home.
A continued source of income
Having your salary cut off can be devastating, especially when you don’t have a backup plan. Being able to stay in control of your finances can get stressful when you have many responsibilities to take care of. Being able to have a continued stream of income is essentially when it comes to keeping any household afloat. Stressing over your finances can be the last thing that you need when you are on the road to recovery, which is why it can be beneficial to have a policy in place.
Get cover when you lose your job
Some circumstances are beyond your control and you could find yourself out of a job. According to the Australian Bureau of Statistics, unemployment increased from 4,600 to 672,100. Furthermore, research by Deloitte revealed that 29% of Australians were now less confident in their ability to retire comfortably by the time they reach 65 or even raise a $1,000 in a week. There are some insurers that offer policies that cover people who have become redundant, but it is vital to ask your insurer if they will be able to cover you for this before taking out a policy with them.
Protecting you and your loved one from becoming financially unstable by having an income protection plan can be one of the best things that you can do to protect your future financially.
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This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.
The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.
Savvy is partnered with Compare Club Australia Pty Ltd (AFS representative number 001279036) of Alternative Media Pty Ltd (AFS License number 486326) to provide readers with a variety of life insurance policies to compare. Savvy earns a commission from Compare Club each time a customer buys a life insurance policy via our website. We don’t arrange for products to be purchased from these brands directly, as all purchases are conducted via Compare Club.
Savvy does not compare all life insurance policies or providers currently operating in the market. Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy.
For any further information on the variety of insurers compared by Compare Club or how their business works, you can read their Financial Services Guide.
