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Income protection explained

My husband is looking at working casually as a teacher in a private business college. Is he eligible to apply for income protection? He would be working regular hours over two campuses — Parramatta and North Sydney.

Income protection is a kind of insurance that is open to both employees and the self-employed. However, the self-employed are more switched on about this kind of insurance as they are responsible for paying themselves wages and looking after their pay if they can’t work.

On the other hand, employees often take out income protection. You see, workers compensation and sickness benefits from an employer only applies for a certain amount of time and won’t necessarily replace what income is earned when you are fully fit and working.

Income protection should be geared up to make sure you can meet expenses that you cannot avoid such as school fees, loan repayments, etc. As with all things you buy, do your homework and find out what the insurances costs, what kind of coverage you get and what is in the fine print that could knockout your right to compensation if it’s required.

For advice you can trust book a complimentary first appointment with Switzer Financial Services today.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

Published on: Thursday, August 26, 2010

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