Are you enjoying a double-income-lifestyle? Or are you happily single? Then it’s likely that you’re underinsured and that is probably due to some common myths about Income Protection insurance. According to Money Management, only one-third of Australians have some form of life insurance, with the majority only covered for what is included in their super.
If you’re amongst the majority and don’t have life insurance, you may think that you can’t afford or don’t need Life Insurance. You may even think that private health insurance and government assistance are all you need to get through a tough time when you’re unable to work.
These are myths that could be putting your future independence and lifestyle at risk.
The options if something goes wrong
So what are the options if you find yourself unable to work? Without Income Protection or Disability Insurance, also known as TPD, Trauma or Critical Illness Insurance, unless you’ve a large amount of savings, there aren’t many.
If you’re part of a couple, could you both manage on a single income? If you’re single, would you have to sell your home or break your lease and look to family or friends for help if you were unable to work due to illness or injury?
Lifestyle and independence are pretty important. Options and choices are the real value of life insurance. It can cover you for lost income and help you maintain your obligations and lifestyle.
So even though you feel top of your game today, it may be a case of making a small investment to protect your tomorrow.
Common insurance myths busted
Private health insurance covers only some of your medical bills as a result of treatment for an accident or illness but does not provide you with an income stream.
Government assistance is far from guaranteed. If you do manage to get through the red tape, you may only be eligible to receive around $300 per week though Centrelink. That Centrelink payment is not even close to the average Australian wage of $672.70 per week (before tax). Whereas with income protection you may receive up to 75% of your monthly income to a maximum of $10k per month.