As an IT contractor, you offer skills on-demand, helping your client do what’s essential for their business. The big question is: If you get sick or injured, how are you going to pay the bills?

What Is Income Insurance?

Income Protection Insurance will keep you financially afloat if you can’t work due to illness or injury. It’s a stopgap that will pay up to 75% of your regular income until you’re back on your feet and can return to work.

Plenty of companies offer this type of cover, including some superannuation providers. Policies vary so shop around for the right one – and always read the fine print!

Things to consider are the agreed value policy, benefit period, waiting period and stepped and level premiums. Premiums are tax-deductible and benefits are tax-free. 

When Would I Use It?

As an IT contractor, you’re all about managing risk and keeping things humming along. 

What happens when you stop humming along? What? Me? Never! Hmmm, I hear you but what if you get serious food poisoning – those prawns in the staff fridge that wasn’t yours also weren’t fresh – or you get hit by a car while riding your bike and you wind up in the hospital for a few weeks and can’t go to work?

That’s when you make a claim on your Income Protection Insurance. Consider it a risk-free investment in yourself that will provide you with a regular income while you’re recovering.

Be in Control

No one likes to think about being injured or becoming seriously ill. The simple fact is we have no control over some things. That’s why it pays to be prepared.

Income Protection Insurance puts you in control. It’s a safety net that will help you to keep on top of things financially if you are unable to work. Relieving financial stress will allow you to focus on getting better.

Remember, benefits are paid on a regular basis, just like salary, when you stop work and they continue until you recover, retire, or you or the policy expires. 

Let’s hope it’s the latter…

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