There’s more to income protection than you may think
When discussing income protection with clients, we find there’s no shortage of misconceptions around what income protection actually covers, and how far reaching this cover can be.
Some people think that income protection only covers injuries and has limited value for those in low risk occupations. The reality is that it also covers illness, which makes up 40 per cent of claims.
Furthermore, it’s not only illnesses with obvious physical affects that are covered.
Mental illness is responsible for many claims and is by no means uncommon in our community; one in five Australians will experience a mental illness at some stage in their lives.
Many clients are equally unaware of the variety of ways income protection can assist, through supplementary benefits and support beyond the basic income stream. The following real life story dramatically illustrates the value of quality income protection insurance.
How Simon’s story unfolded
In the three months following the death of Simon’s best friend, Simon developed a debilitating post traumatic stress disorder resulting in clinical depression and time off work.
Fortunately, some years earlier Simon had purchased income protection.
This paid him a regular income, which helped replace lost wages. Simon was also offered a rehabilitation benefit, through which he was assigned a rehabilitation adviser.
The rehab adviser developed a management plan and worked with Simon’s GP to identify appropriate courses of therapy.
With Simon unable to return to his own occupation, the rehab adviser engaged a specialist — paid for by insurance — to retrain Simon for the building industry. Simon progressed well and was able to secure his first building job.
A twist in the tale
Long working hours, less family time and medical support took its toll; Simon suffered a relapse. The rehab adviser once again became involved and even organised a personal trainer to help Simon lose weight and to improve his general well-being.
Simon persevered, recovered and was able to recommence work, this time with more on-the-job training and support. Despite the fact that he was working full time, the insurance continued paying partial income support, due to his wages being less than what they were prior to his disability.
Taking the next step
Simon’s story demonstrates the value of quality income protection insurance that goes beyond a simple income stream; insurance that provides holistic support for the complexities that illness can bring.
Source I Asteron
Life is full of unexpected twists and turns. If you found yourself in a situation similar to Simon’s, could you survive without income protection? Don’t leave it to chance; speak to us today about the income protection options available to you.
People seeking support and information about depression can contact Lifeline on 13 11 14 and MensLine Australia 1300 78 99 78.
