A large number of people have significant amount of debt piled up by the time they are in their thirties, which they pay off out of their monthly salary. But, in case of an eventuality like a disease or an accident, it definitely becomes harder to pay the bills. It eventually becomes impossible to continue in the same lifestyle when one loses one’s regular income. Your ability to earn a regular income is a significant asset that needs to be protected.

Many individuals insure their houses and other assets but few realise the importance of protecting the greatest asset, which is their ability to earn regular income. This is where Income Protection Insurance steps in, providing this protection to you if an eventuality like an accident, or illness strikes and when you are unable to perform your own occupation. Today, a number of people experience the need for income protection insurance in Australia.

In essence, Income protection insurance provides for a proportion of an individual’s income (75%) if he or she is unable to work due to injury or sickness.

Premiums of an Income Protection Insurance vary depending upon age and other factors. Generally speaking, an income protection policy costs around one week’s salary, a year which comes to around 2 % of gross income. The younger you are, the less you pay for your income protection insurance. Also, blue collar occupations have higher premiums as compared to white collar occupations.

If the policy holder is unable to work for the prescribed waiting period, he is eligible to make a claim for benefits of the income protection insurance. But one must be medically unfit to work, as certified by their doctor. The Doctor also reports back to the insurance company with regular check-ups

Income protection insurance ensures that you keep paying your bills. For more information on Income protection insurance visit www.insurancekings.com.au.