Throughout our working lives, many of us will have to face the situation where we fall sick and have to stay home or in hospital to have our condition treated. In certain circumstances, our sick leave will not cover our expenses for the duration of the recuperation time and we’ll suffer from no income.
Income protection insurance can safeguard against this possibility as the insurance allows us to enjoy a reliable means of financial protection in the event we should fall too sick to work.
Income protection insurance covers those unable to work due to sickness, accident or other disability. Under an income protection insurance policy, most funds will pay at least 60 per cent of your usual salary, although other funds will pay up to 75 per cent.
The waiting period for financial cover from an income protection insurance policy can be anywhere between seven days to 12 months, so always read the fine print when hunting for an income protection insurance policy. Longer waiting periods will be acceptable for those who can continue with part time work or have enough income to sustain themselves temporarily, however waiting for too long can cause further stress for those who need urgent medical and financial assistance.