What would you do if you couldn’t work due to illness or injury? Do you have a back-up plan? How long will your back up plan last?

Income Protection Insurance covers you if you couldn’t work due to illness or injury and helps you cover your normal day to day living expenses such as groceries, bills, mortgage and other debt repayments, and lets you focus on your recovery instead of worrying about how your bills are going to be paid.

Income Protection Insurance can be paid by your cashflow (known as Retail) or directly out of your super. There are a few options within Retail Income Protection Insurance. You can choose to be covered for the short term or for the long term (2 years, 5 years, to age 65) and you can choose to have a waiting period of 30 days or 90 days. Super Paid Income Protection Insurance usually covers you for only 2 years and it is only a very basic cover, so depending on your circumstances, it could benefit you to take out Retail Income Protection Insurance, if you haven’t already done so.

However, there are changes happening within Retail Income Protection Insurance and you may be wondering how this is going to affect you, whether you already have a policy or you are considering getting a policy.

Any Income Protection policy that you currently have will not change and will stay as is until you decide that it doesn’t meet your requirements anymore.

From April 1st 2020, ‘Agreed Value’ policies will no longer be available and all policies offered will be ‘Indemnity’, this means that all new policies will be based on your gross income at the time of your claim, no matter what income you disclosed at the time you set your policy up. This also means that if you change your job to a lower income and have to make a claim, your claim will be based on the new job.

Along with the above change there are other proposed changes from July 1st 2021.

  • Benefit caps – the first 6 months of your claim will be 100% of your income and then will drop down to 75% after 6 months if you are still unable to work. This is to encourage you to get back to work.
  • Policies to be renewed every 5 years – This is so that your policy remains up to date with your circumstances, as well as medical advancements. At renewal time, you can ask that your policy is to be renewed without a medical and only have your occupation and finances reviewed.
  • Stricter disability definition’s when looking at longer benefit periods.
  • Maximising the benefit payable to $30,000 per month.

 

Please speak to your financial adviser before making any decisions as you don’t want to cancel your policy if it is of more benefit to keep rather than change.

Getting the right protection can make a big difference

Speak to one of our Insurance Specialists today about Income Protection

Income Protection Insurance

Did you know 2 in 5 males and 1 in 4 females will suffer a critical illness between the ages of 30 and 64.

What is Income Protection Insurance Cover?

Income Protection provides up to 75 per cent of your income if you are sick or injured and are permanently or temporarily unable to work.

What would happen if you had to stop work due to sickness or injury? How would you pay for bills if your income stopped? Being ill or injured is difficult enough, without the financial pressure of not being able to earn an income. With Income Protection you can protect your income and financial security and maintain you and your family’s lifestyle.

Income Protection Cover protects your family’s financial security if you are sick or injured and are permanently or temporarily unable to work.

You should consider Income Protection Cover if you:

  • Have a family or dependants
  • Have a mortgage or other debt
  • Would need to live on if you couldn’t work again
  • Don’t have savings to cover unexpected expenses, for example: medical bills
  • Have a business or business partners, are self-employed, or are a company director or key employee

 

A real-life story of the benefits of Insurance Protection
After the diagnosis of serious a medical condition, one of our long-term clients received an insurance benefit payment which was then used to help fund the cost of specialist medical treatment. The insurance benefit was designed to support themselves and their family through a challenging period if things turned bad. Sadly, after a lengthy medical battle, our client passed away leaving behind their partner and two children. Without adequate insurance protection, their family assets could have been lost leaving their partner to start again from scratch. Thankfully, our client acted on advice to protect their income, their health, and their family assets while they were in a place of good health. Their purpose was to protect themselves with appropriate insurance cover and to ensure that their family would be provided for in the event of sickness, accident or premature death. They were ultimately successful in what they had set out to achieve and why it makes their story worth telling.

What are the benefits of Income Protection Insurance Cover?

Income Protection protects your family’s financial security by providing up to 75 per cent of your income if you are sick or injured and are permanently or temporarily unable to work.

Income Protection Cover Premiums can be paid both inside and outside of superannuation. This means you have a choice of paying;

  • From your own personal cash flow (tax deductions may be available)
  • From your superannuation balance

 

How does Income Protection Cover Work?

There are many decisions to be made when choosing the most appropriate Income Protection Cover to suit you and your family’s financial situation. Seeking professional assistance will ensure you choose the most appropriate level of cover to maintain your lifestyle and protect you and your family’s financial security.

We will meet with you to evaluate your situation and answer your questions. Based on your needs, an FAA Specialist they will then present you with the appropriate advice and suitable policy options for you – this will detail the most appropriate waiting periods and benefit periods to ensure you are adequately protecting you and your family’s financial position.

Once you have selected your preferred Policy, our specialist team will arrange and implement the agreed level of cover and provide assistance with documentation and support throughout the entire process.

Income Protection provides up to 75 per cent of your income, after your nominated waiting period, if you are sick or injured and are permanently or temporarily unable to work.

Contact us today to organise an initial appointment with an Insurance Specialist. The Insurance Specialist can show you whether life insurance is right for you and how much cover you need.

How can we help you?

Contact us today to organise an initial appointment with an Insurance Specialist.
Your Insurance Specialist can show you whether this insurance is right for you and how much cover you need.
We provide a holistic service and can assist you in all areas of your financial life.

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