The importance of income protection only ever becomes apparent in the face of retrenchment when it is already too late. People don’t always think about the loss and they don’t always think about it happening until it comes knocking on their door. If you suddenly find yourself sitting in your boss’s office and you are offered release papers that relieve you of your responsibilities with the company you are working for. They normally offer you a settlement offer that pays out your salary to the value of three to six months in a single lump sum. If you accept the settlement amount, then you can go back to your desk, pack your things and head off home for the rest of the day. If you have at least 3 months worth of salary taken care of them at least you don’t have to worry about falling short of your payments during that time.
The thing you need to consider is what happens when you don’t get a job in time and you run out of money to afford all those payments. Search income protection Australia to find a place that is local and affordable in your country. You can even refine it further and add the city or town if you like and you will most likely find someone in your neighbourhood. Your benefits are the most important thing to consider when it comes to income protection. You have to know how long they will wait before your benefits kicks in after unemployment. Some of the companies are willing to offer a reduced premium if you are willing to put on a waiting period of 3 to 6 months on your insurance. That means you will have to remain unemployed for that entire period before your payouts kick in and you can start to receive money every month to replace part of your salary.
Always check the waiting period on your cover before deciding on that policy. If you are a provider for the family and the financial status and sustainability is dependent on your income then you could put that in serious jeopardy if anything happens to your job. In most cases, the companies will only payout up to 75% of your original salary so you need to be prepared to tighten your belts a little during the time that you are receiving the benefit payout.
Once you get a job, the benefits will stop and hopefully you can carry on with your life unhindered by the hiccup of losing a job.