Most people's perception of income protection is that it's something that only self-employed tradies need. This is usually because they’re working on-site with a plethora of dangers.
It might surprise you to find out that that in the top occupations for income protection claims in 2016 according to AIA Australia, tradie jobs don’t even make the top three. Instead they were a sales assistant, general clerk and a shop manager.
Income protection provides up to 75% of your income to help support you financially, if you become ill or injured and unable to work and earn an income for an extended amount of time; whether it’s on a worksite or in an office.
In 2016 TAL reported musculoskeletal conditions or injuries as some of the more common reasons for income protection claims. However, TAL also found that cancer diagnosis and mental health were among the most common causes of income protection claims.
AIA Australia statistics told a similar story. They found the second highest rate of claim was for cancer, followed by mental health conditions for both men and women, with just over half of claims relating to cancer for women being for breast cancer.
What does this mean?
What becomes immediately obvious when looking at the top reasons for income protection claims is that the vast majority of the causes for claims are generally unavoidable. Diseases, cancers and mental disorders can affect anyone at any time irrespective of their occupation.
That’s why Income Protection Insurance should at least be a consideration for the vast majority of ordinary, everyday Australians. TAL paid just under $338m to Income Protection claimants in 2016 and AIA Australia paid over $57 million in 2015, helping individuals and families continue living their lives, despite being unable to work due to illness or injury.
With TAL reporting that 60% of its total claims paid in 2016 were to help support people while they recovered from illness or injury, rather than for the passing of a loved one, the importance of having income protection as well as life insurance becomes clearer.
If you’re not already covered by income protection insurance, but think you might just need it one day, consider comparing income protection insurance quotes from a company like Lifebroker, which compares leading life insurers in Australia. Income protection can provide you with up to 75% of your monthly income as a benefit payout to help you manage your finances while you’re unable to work.
Lifebroker is a comparison service which enables you to compare some of the leading life and income protection insurers in Australia and help you understand the insurance product’s features and benefits, so you make an informed decision about which product could be right for you and your family should you ever need it.
Visit Lifebroker to compare income protection insurance quotes and see if you can give yourself that peace of mind of financial security if you’re ever injured or sick.
This article is general advice only; please visit www.lifebroker.com.au for more information.