Income protection is a type of insurance that provides you with a portion of your income if you’re unable to work due to illness, injury, or disability. It’s essential because it helps maintain your financial stability by ensuring you can still cover your expenses, even if your ability to earn is temporarily or permanently affected.
The amount of income replacement varies depending on the policy, but typically, paycheck protection covers between 50% to 70% of your pre-tax income. This ensures you can still manage necessary expenses, such as mortgage payments, utilities, and groceries, during your recovery period.
No, Income protection and workers’ compensation are different. Workers’ compensation only covers work-related injuries or illnesses. Income protection covers you regardless of where or how the injury or illness occurred, making it a more comprehensive option for income replacement.
Yes! Self-employed individuals can also purchase Income protection policies. Since self-employed workers don’t have employer-provided benefits, paycheck protection is especially valuable for ensuring that your income continues, even if you’re unable to work.
