Income Protection Insurance
Income Protection Insurance
Income Protection insurance is probably the most essential type of insurance cover because your income determines your standard of living, your ability to build wealth and your capacity to provide for retirement.
It provides you with an income should you become unable to work due to an injury or sickness. Benefits are paid monthly. The amount of cover is usually restricted up to 75% of your gross salary. Premiums are tax deductible for most taxpayers and the income is assessable because it replaces lost ‘assessable’ income.
The choice of cover depends entirely on your individual circumstances.
Because of the number of choices, advice from Insurance Matters QLD is essential.
For example:
- Benefit periods can vary from 2 years to age 65 or life for accident cover
- Waiting periods (the time before a claim is paid) can range from 14, 30 or 90 days to even longer
- Maximum benefit calculations for self-employed people can be complex
- Claims benefits can be escalated in line with inflation
- Your occupation determines your premium and some companies exclude some occupations altogether
- Policy definitions can vary greatly between companies especially the definitions of “total disability” and the differences between ‘own occupation’ and ‘any occupation’ and ‘Indemnity’ vs ‘Agreed Value’
- Premiums can be ‘Stepped’ or ‘Level’
Not sure what type of insurance you need?
Not sure what is involved or not sure of the cost?
Book a call and we can show you how easy it is to get the right insurance covers in place.
Do I earn enough money to need insurance?
There are many misconceptions about income protection.
One of the biggest is that people who have a lot to lose financially should only consider income protection.
But here’s the thing: Your lifestyle is supported by your salary, whatever you may be earning right now.
No matter how much money you make, how will you pay your bills if you lose it?
Anybody who works can benefit from the security and peace of mind that income protection insurance offers.
Consider income protection as financial safety net that is there for you to use if your income stopped.
Think about what you and your family would do if your salary wasn’t automatically deposited into your account each pay day.
Many households only have sufficient savings to cover them for 2 missed pay packets before they risk losing their homes.
With the average person works for a long time, with retirement age stretching out past 65, It’s unlikely that you’d avoid becoming sick or hurt over your entire working career.
