21 September 2021
While most people have their cars, homes and other assets insured, many fail to protect their ability to work with income protection insurance. And with income protection rules changing from 1 October, it’s more important than ever to review your income protection and life insurance needs.
Many of us have income protection cover through our superannuation fund and it’s common for people to see they have income protection in their super and leave it at that.
But do you know the terms of the policy, how much you are covered for and how long you are covered? Most people don’t realise that their cover inside super will probably not provide them with the level of protection they were expecting.
Choosing a risk insurance policy
With a vast range of risk insurance options available from various insurance companies, it’s a good idea to review your risk insurance requirements with a qualified risk adviser. A risk adviser can cut through the jargon to help you understand the policy’s features and benefits and how they will help when needed. They will also be able to recommend the best fit for your circumstances and budget.
Policy wording is important - the stronger the policy wording is, the more likelihood there is of claims acceptance. A clear understanding of the type and structure of the policies is also vitally important.
Risk insurance policies should be reviewed annually, or at least every two years. This is especially important if there have been any significant changes, such as change of income or occupation.
Paying attention to each of these areas will help ensure the policy you have been paying for will pay your claim when you need it the most.
Total and Permanent Disability (TPD) and Trauma Insurance
When structured correctly, income protection insurance can complement TPD and trauma insurance, helping to protect you and your family when you make a claim so you are not exposed to unexpected expenses.
While income protection may provide you with financial protection, it may not be enough to provide you with the security you were hoping for. TPD or trauma insurance can provide a lump sum payment that will help avoid unnecessary financial pressure on you and your family so you don’t have to downsize your home or sacrifice your retirement objectives to fund the medical treatments you may need.
With income protection rules changing from 1 October, there’s never been a better time to protect your income. For assistance with establishing or reviewing your income protection policy, contact our insurance experts today.