What is Income Protection Insurance and Why Is It Essential for Your Financial Security?

There’s nothing worse than having life happen and not being able to recover peacefully, as you’re worried about when you’ll next be paid. If you’ve suffered from an illness or injury, you deserve to focus on treatment and know that your livelihood is protected. That’s what Income Protection Insurance is for. 

Morgan Insurance Brokers are skilled in providing you with expert advice, so you don’t need to navigate Income Protection Insurance alone. As your one-stop solution for insurance, we want to ensure you understand your cover and feel confident in living life with the knowledge that you have a safety net. 

The first step is to break down Income Protection Insurance and understand why it is important to guarantee your financial security. You’ve come to the right place.

Income Protection Insurance: What is it?

Unfortunately, if you catch an illness or get injured and need to be off work for a while, you still need to pay rent, buy groceries and pay your utility bills. But your income isn’t guaranteed if you’re away from work. Income Protection Insurance helps cover 70-90% of your income, allowing you to maintain the essentials during your recovery period. 

There are multiple aspects to consider that affect your Income Protection Insurance and what the cover looks like for you. For instance, an insurer will consider your age, occupation, health and lifestyle to determine the cost and cover of your insurance. Once an agreement is made, if you need to claim on your insurance, payouts (as agreed by your terms and conditions) will be made to you while you are unable to work. 

How can it provide me with Financial Security?

Income Protection Insurance is your safety net so you can get on with life. But how does it stabilise you in terms of financial security? We know it covers your income, but there are other benefits of Income Protection Insurance:

• Every-day expenses and financial commitments are covered, so you don’t need to worry about where you’ll need to get this money from.
• Safeguarding of your current assets and income, as you won’t need to dip into your savings to survive.
• A customised support system. Your Income Protection Insurance can be personalised to your requirements, so you can ensure you receive support that is beneficial to you. For example, if you don’t need a cover that pays out immediately and can afford to fund yourself for a little while, you can pick a shorter waiting period.
• The coverage will continue until you return to work or reach your policy limit. There’s no rush. Your treatment and recovery are protected whilst avoiding financial strain.
• It can preserve your credit score and prevent you from taking on financial commitments such as bank loans. This helps secure your long-term financial stability and health.

Who can Income Protection Insurance cover?

You can expect long-term financial stability with Income Protection Insurance, with peace of mind that if you need to take time off to recover, your current assets and wealth can remain stable. One common question is, who can be protected with Income Protection Insurance? The short answer is an employee (or self-employed) individual with an injury or illness that qualifies for a claim. Some examples of scenarios that qualify for income protection include:

• Terminal illness, such as cancer.
• Mental health conditions
• Back, Hip or Knee injuries sustained at work
• Broken bones or fractures 

It is a common misconception to think that protecting your future and assets is beneficial only to adults with stable careers. However, young individuals can also benefit from Income Protection Insurance as it allows them to forward-plan their finances without having to worry about tomorrow. If you have an income and you don’t want to find out what happens when you can’t access it, you should consider Income Protection Insurance.

Choose Reliability, Choose Morgan Insurance Brokers

Above all, choosing a reliable Insurance broker to advise you on a tailored and trusted Income Insurance Protection is essential. Morgan Insurance Brokers is committed to providing you with expert advice so you can secure the best policy.

You don’t need to figure it all out alone. That’s what we’re here for. Contact us today to speak to one of our dedicated professionals for more details.