Income Protection Melbourne

Income protection cover is something every employed worker needs to have. You will not have to worry about how you will be able to pay your rent, buy food or educate your children in the event that you are not able to earn a living as a result of an illness. This is because when you sign up for this cover you will be able to continue receiving about three quarters of the same amount of monthly income you would have earned if you were still in gainful employment. This may not afford you the luxuries you had been used to but you will have enough to cover your basic needs and perhaps more.

The amount of money you will earn as a result of having income protection cover will depend on the percentage of your salary or income that you had covered. If you cover a high percentage of your income then you will certainly be paid a lot of money monthly. If you decide to cover a lower percentage then the reverse will happen. Like other insurance covers, it is always easier to get an income protection when you are younger. The premiums are usually lower for younger people than it is for older citizens. So go and get one when you are still young.

Your insurance agent or provider will ask you certain questions before giving you an income protection insurance to determine the nature of your employment. The aim is to find out how risky or not risky your job is. In the event that you work in a dangerous industry or one that constantly exposes you to health hazards then you will have to pay higher premiums than someone that works in a relatively safe environment. The logic is that your chances of losing your job as a result of injury or accidents are higher if you work in a dangerous environment.

Income protection works in such a way that it covers you till you are at the age of 65.

This cover is not just for people who work in formal employment. Even unskilled labourers or self-employed people can get this cover for themselves. It will be a whole lot harder for you as an unskilled labourer to get an income protection cover but that does not mean that it is impossible. You will just need to do a lot of research in order to know the kind of cover that suits you.

Remember that not all cover will be good for you. You have several sources of information that you can access especially through the internet. You do not even have to go to the agencies in order to access the information as you can get all the information you need from your living room. Some premiums are low while others are high for the same kind of income protection. As such you will need to keenly check the terms and conditions of the agreement before you sign as this will help you understand the contract well enough.

Go to the MoneySmart Website for more information.