Why Apply for Income Protection Insurance If You're Self-Employed

Being self-employed comes with a lot of perks that you wouldn't find if you were working in an office. These include being your own boss, setting your own schedules, as well as having a direct hand on how you want your business to succeed. However, being a salaried individual has one big advantage over their self-employed counterparts: sick pay. So if you're your own boss, you will have to shoulder your medical insurance too. It's okay since everyone needs to be covered for that anyway. But what would you do if you fell ill or got injured in an accident that prevented you from working for a long time?

Enter income protection insurance. This is a type of insurance that is designed to provide the insured with monthly benefits should he be unable to work due an illness or injury. But why do you need this type of insurance if you're self-employed? Here are a number of reasons:

  1. It protects your finances. If you have this type of insurance, you will have about enough money to help you with all your financial expenses and obligations. Income protection insurance can provide you up to 75% of your salary, which you can use to pay for your utilities, your daily expenses, and the other financial needs of your household.
  2. It lets you focus on your recovery. When you're recovering from an illness or an injury, the last thing you want to do is worry about money, as this could have a negative impact on you. However, if you receive monthly payments, you don't have to worry about where you'll get money for your household expenses and instead just focus on getting better.
  3. It protects you from uncertainties. Uncertainty is part of being self-employed. If your line of work is seasonal for, example, you will see regular fluctuations in your finances. However, if you have agreed value income protection insurance, those fluctuations wouldn't matter since the value of the benefit is based on your salary when you applied for the insurance. This then enables you to receive a steady amount of benefits while you recover.

Get the Right Income Protection Insurance Today

Despite countless offers from various insurance companies, not all income protection insurance policies are made equal. It's therefore important that you shop around first before choosing one. The qualified advisors are ready to assist you by providing you with rate comparisons of Australia's top insurers. This enables you to find the policy that's tailor-fit to your needs. Contact us today for more details!


Get your quotes now

What to find out more? Enquire now

Published on May 5-th, 2013 in Income Protection Insurance
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.

More on this topic

Enquire about Income Protection Insurance

Important Information

Not all providers in the market are included in the comparison.

Any information or advice contained on this website is general in nature and has been prepared without taking into account your objectives, financial situation or needs.