Having an income protection means you get paid a monthly income for as long as you are unable to return to work due to an injury or major illness, or until your benefit period expires.
A case study
Joe is a 35-year-old self-employed plumber. He is single with no dependants. Having worked hard over the years, Joe has acquired two investment properties. He makes fortnightly loan repayments on each property. On a holiday, Joe had an accident while snowboarding, leaving him with a torn ligament in his knee. Joe needed a full knee reconstruction and ended up being off work for almost 9 months. Fortunately for Joe, he had peace of mind knowing his Income Protection policy would pay him a monthly benefit of $5,300 per month from the day of his accident. This monthly Income Protection payment enabled Joe to meet his ongoing mortgage commitments on his investment properties as well as covering his general living expenses whilst on claim.