Income Protection Insurance can help you cope financially, in the event of losing your income due to sickness or injury. If after the expiry of your waiting period, you are unable to earn your pre-disability income from personal exertion in your usual occupation, and you are under the regular care of (and following the advice of) a doctor, you are entitled to a benefit.
Income Protection Insurance pays an income stream, which you can use to:
- Maintain a regular income stream through sickness and/or injury;
- Retain the ability to pay your mortgage/rent, bills, ongoing normal expenses;
- Provide your partner the benefit of not having to increase their working hours.
Income Protection policies provide a monthly income benefit if you become disabled and are unable to work as a result of sickness or injury
- You can insure up to 75% of your gross salary.
- Waiting period – this is the period that you are required to wait in the event of a claim before the insurer commences paying you a benefit. Options include anything from 14 days, 30days, 60 days, 90 days, 120 days, 180 days and up to 2 years waiting period. The shorter the waiting period, the more expensive the premiums will be.
- Benefit period – this is the length of time that the insurer will continue paying you, in the event of a claim. Benefit period options include 1-2 years, 5 years, to age 65 and to age 70. The longer the benefit period, the more expensive the policy; however, a longer period means you will be covered sufficiently should you suffer a long-term injury.
As the cost of a claim does not outweigh the value of the insurance, in most cases, some form of income protection will serve you best. It will depend on when the event occurred and how long till you can get back up on your feet.
In conjunction to income protection you have the ability to apply for other covers that can provide discounts. This is typically known as multi cover. Having a multi cover policy can include death cover, total and permanent disability and trauma cover. Making sure that the right structure is setup will depend on your individual and or family circumstances.
“Insurance is like a parachute. If you don’t have it when you need it most, its too late!
Call today on 1300 850 902 and talk with a friendly Income Protection Expert for the best and up to date method for setting up your Income Protection.