Income Protection: The most common myths

Income protection insurance is a vital component of financial planning, providing you with peace of mind that you and your family will be financially secure if you’re unable to work due to an illness or injury. Unfortunately, there are several misconceptions about income protection that prevent many people from taking out a policy. In this article, we’ll debunk five of the most common myths about income protection.

Myth 1: I Don’t Need Income Protection Because I’m Covered by Workers’ Compensation

While workers’ compensation covers you if you’re injured at work, it doesn’t cover you for illnesses or injuries that occur outside of work. Income protection provides cover for both work-related and non-work-related illnesses and injuries, so it’s important to have both types of insurance.

Myth 2: Income Protection is Too Expensive

Income protection premiums vary depending on several factors, including your age, occupation, health, and the level of cover you choose. However, income protection is often more affordable than people think, and the cost is tax-deductible, making it even more affordable.

Myth 3: I’m Young and Healthy, So I Don’t Need Income Protection

Nobody knows what the future holds, and even young and healthy people can become ill or injured. Income protection provides a safety net if you’re unable to work, ensuring that you can continue to meet your financial obligations and maintain your standard of living.

Myth 4: Income Protection Only Covers Serious Injuries and Illnesses

Income protection covers a wide range of illnesses and injuries, from minor injuries to more serious conditions. Some policies also cover partial disability, which means that you can receive a benefit if you’re able to work, but not in your usual occupation.

Myth 5: Income Protection is Too Complicated

Income protection policies can be complex, but an experienced financial advisor can help you navigate the options and choose a policy that’s right for you. A financial advisor can also help you understand the terms and conditions of your policy, ensuring that you’re fully informed about your coverage.

In conclusion, income protection is an essential component of any financial plan. Don’t let these myths prevent you from taking out a policy that can provide you and your family with financial security and peace of mind. Talk to a financial advisor today to learn more about income protection and how it can benefit you.