Understanding Income

If you're a sportsperson taking part in rugby, skiing or cycling, for example, you have a chance of getting injured despite having the right safety gear on and following the rules. That's simply because bad luck is unavoidable. The Medical Journal of Australia found in one of its recent studies that from 2007 to 2015, serious injury rates in Victoria rose by 8% every year.

What is Income Protection Insurance?

An income protection cover substitues your income to help you with your daily expenses in case you're unable to go to work due to an injury or illness. The benefit is paid on a monthly basis and covers upto 75% of your minthly income. This back-up income can assist you with the ongoing expenses of running your houshold and make sure you continue to meet other financial obligations.

What is covered under Income Protection?

You can customise your insurance policy as per your situation and needs. You can be covered for accidents in the workplace, household or transportation that eave you unable to return to work. You can also be covered for specific illnesses like a heart attack, or even mental health illnesses. Some insurers offer Sports Cover that is designed to cover injuries that are endured while playing sports, e.g. a torn ligament from a rugby game. There are certain situations for which you are not covered under an income protection policy. These can be a self-inflicted injury or one sustained while committing an illegal act. You can find detailed information on what you are and are not covered for in the Product Disclosure Statements of relevant insurers.

How much does Income Protection Insurance cost?

Your premiums for an income protection cover vary on the type of cover you go for. Cost of insurance also depends on other factors like your lifestyle, medical history and pastime activites.

How long does Income Protection last?

Income Protection is usually offered between the ages of 18 and 59 and the cover is available to you until the Policy Anniversary before your 65th birthday. It also depends the waiting period and benefit period you choose. Your waiting period is the time you must wait, after the date of disablement, before you can claim on your benefit. The benefit period is how long you have chosen for the benefit to be paid after the claim is successful.


If you would like to discuss the contents of this article, please call us at 02 8015 5507 or email us at info@angelicinsurance.com.au Please note that at Angelic Insurance, we can only provide you with general information, and do not consider your personal objectives and financial situation. You should consider whether the advice is suitable for you before making the final decision.

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