Income Protection insurance for clients enables you to protect you and your family in the event of you suffering a sickness or injury and are unable to work.
Would you insure a machine that produces income?
Imagine if you had a machine in your backyard that produced your level of income you are earning today? Would you insure this machine just in case it stopped working? As an income earner to your household, you are this machine. If you broke down with a sickness or injury and could not work, how would you meet the ongoing mortgage repayments, car repayments, lifestyle cost and educational cost?
Income protection will cover up to 75% of your income meaning you and your family do not suffer financially. In addition, it will give you ample time to recover in full and return back to the workforce.
Worldwide 24/7 Cover of your income
Income Protection is one of the most important forms of insurance covers in Australia. Income Protection is a worldwide 24/7 cover meaning that if any sickness or injury was sustained during or outside of work (anywhere around the world), income protection will cover you until you are fit to return back to work.
The ability for you to earn income allows you to meet your ongoing home loan repayments, fund your lifestyle costs, the education cost for your children and much more. Without having income coming into your household, this could place you and your family under significant financial stress.
The Key Features of Income Protection
Income Protection Insurance has many features that you should be aware of and this is where we advise our clients based on their personal and financial situation. Some of these features are listed below:
- Income protection insurance allows you to cover up to 75% of your salary.
- Income protection insurance is generally tax deductible should this be held in your personal name.
- Income protection insurance has various waiting periods (time to claim) such as 14, 30, 60, 90 or 180 days (premiums are cheaper as the waiting period increases).
- Income protection insurance offers various benefit periods or ‘how long you can receive benefits for’. This includes 2 years, 5 years or up to 65 years of age.
- Some Income Protection providers offer a ‘redundancy option’ that will cover your mortgage repayment if you are made redundant. This means you can make a claim even if you do not suffer a sickness or injury.
- Income protection insurance has two features such as ‘indemnity style or agreed value style’:
- Indemnity style option means that you have to prove your income at the time of claim.
- Agreed value option requires you to prove your income on application. As such, should your income decrease at the time of claim, you will receive the agreed amount insured at the time of having your policy approved.
If you would like a quote on income protection insurance please complete our online enquiry form below or simply contact our office for further information.