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4 Reasons Why You Need Income Protection Insurance

Any capable financial consultant will surely point you in the direction of income protection insurance. This type of insurance yields a slew of different benefits that will help you manage and protect your personal finances. With that being said, we are aware that not everyone is knowledgeable about this.

This is why we thought it would be useful to put together a short article that discusses the reasons why you need income protection insurance. If this is something that you’re interested in knowing more about, read on as we discuss how income protection insurance can help you.

It Protects Your Income When You Can’t Work

Life is uncertain. There may come a point wherein you get ill or injured and will be unable to work. This will put you in a financial bind, as you will still need to pay for your bills and daily needs. This won’t be a problem if you have income protection insurance. With insurance, you can receive up to 80% of your regular income whenever you are unable to work. This will go a long way when it comes to helping you focus on getting better and should be enough to cover most of your expenses while you are out sick or injured.

It Is Customizable to Fit Your Needs

Another great thing about income protection insurance is that it is customizable to match your financial situation. You can opt for paying a higher premium or a lower premium depending on your needs. Paying a higher premium allows your insurance to pay you out earlier after you make a successful claim. On the other hand, paying a lower premium extends the payout period. You may also adjust how long the insurance covers you as there are both long-term and short-term options when it comes to income protection insurance.

It Can Help You Bounce Back

Losing your job tends to have long-term repercussions as it puts you in a pretty difficult financial situation. So much so that it can even completely derail a person’s life. And while things may still be difficult, income protection insurance will make your road to financial recovery infinitely easier. Not only will you be able to pay for all your monthly expenses but it also helps you avoid any major financial decisions, such as selling your home or taking out a high-interest loan that puts you under even more debt, just to stay afloat.

It Covers You for Redundancy

Lastly, this insurance can help cover redundancy If you feel like you’re having a hard time paying your mortgage, personal loan, and other bills after being made redundant, then income protection insurance is for you. This type of insurance can help you pay out monthly, allowing you to pay off your debt while you are unemployed.


We hope this article has convinced you of the many benefits of income protection insurance. For the best results, be sure to speak with your financial consultant so that they can help you figure out the best course of action that will protect your finances.

If you are ready to take the next step towards getting your life in order, look no further because we can help you! We have the best financial consultants on the Gold Coast. Swell Financial Planning offers various services depending on your specific goals. Contact us today for a better tomorrow.


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