When it comes to preserving your financial wellbeing, income protection insurance can be a powerful tool, as it provides a regular income stream if you’re unable to work after the period of time specified in your policy, due to illness or injury.
If you’d like to learn how it works, and how to tailor your policy to your needs, click here. And if you’re still not quite sure if income protection is for you, here are five key reasons to consider it.
Wider protection than just ACC
While the Accident Compensation Corporation (ACC) offers a great layer of protection for accidental injuries, unfortunately accidents are not the only event that can put you off work.
In fact, serious illnesses are also common, and income protection covers both accidents and illnesses that prevent you from working. Plus, some income protection policies offer a wider range of benefits and coverage options, like vocational assistance, childcare support benefits, and even redundancy cover.
Keep staying on top of debt
If you're unable to work due to an illness or injury, it's likely that you'll face a reduction in your income – or will receive no income at all. Would your family still be able to keep up with regular expenses, including bills, mortgage payments, and other debts?
By providing a regular income stream for an agreed period of time, income protection can help you stay on top of your financial obligations – even if you’re unable to work.
Focus on your recovery
Dealing with a serious illness or injury can be quite stressful, and even more so if you also have to worry about your finances. On this note, one of the key benefits of income protection is financial stability: it allows you to focus on your recovery, without the added stress of worrying about how you’ll meet your financial commitments.
Plus, some policies offer benefits that are designed to accelerate your return to work, like access to rehabilitation services and vocational training. Just what you may need to restore your income as soon as possible.
Protect your family’s lifestyle
Without income protection, you may be forced to tap into your emergency savings, which might not be enough to cover all your expenses for an extended period. This type of cover can reduce the impact on your family’s standard of living, and in turn, it can help minimize the impact of your illness or injury on your daily life.
Extra peace of mind in uncertain times
In addition to these benefits, income protection insurance can also be particularly valuable in times of high inflation.
When inflation rates rise, the cost of living increases, which can put a strain on your finances and make it even more challenging to keep up with your expenses if you're unable to work due to illness or injury. Income protection insurance can help provide a buffer against these effects, so you can feel more confident in your ability to weather financial challenges.
Like to explore your options?
Just like all other types of personal insurance, income protection is all about achieving peace of mind. The what-ifs in life can be many, and this is why it’s important to plan ahead and consider your options.
Use our handy quote compare tool to get started, and if you have any questions, our friendly insurance advisers are here to help. Give us a call on 0800 800 400, start a Live Chat or fill in our contact form to get in touch.
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.