Income Protection Insurance Central Coast

If you can’t work for a while due to serious illness or injury, Income Protection Insurance will typically pay you a monthly benefit. The amount will vary depending on the policy you take out but it’s often up to 70% of your regular pre-tax income. The period for which you receive a recurring benefit will also be policy dependant. Some policies may also provide cover in the instance of redundancy.

Yes, insurers will usually stipulate a waiting period. This is essentially the amount of time that needs to pass after losing your income (through becoming incapacitated or otherwise) before you can begin to receive benefits through your Income Protection Insurance. You’ll usually have the option of choosing your wait period when taking out the policy; however, the shorter the period, the more expensive your premiums may be.

Yes, Income Protection Insurance can usually be claimed back on tax, but not in every circumstance. You’ll need to seek advice prior to taking out a particular policy to ensure you’re eligible. If Income Protection Insurance is taken out through your Superannuation, typically you probably won’t be able to offset the premiums against your tax obligations.

Yes, you can. For some this might not be the preferred option, but for others it may make the most sense. Taking out multiple policies with different waiting periods (short and long term) could be more beneficial given your circumstances than a single policy. To best understand your specific situation, get in touch with a professional insurance broker.

Absolutely. One of the advantages of income protection insurance is the degree of flexibility it offers:

• You can typically choose the level of income you want to protect.
• Additionally, you can set your waiting period, which is the duration from when you cannot work until you receive the policy benefits.
• Similarly, you can also determine the benefit period, which dictates the maximum duration for which you can receive the insurance payments.

Choosing the right level of customisation requires careful consideration of your circumstances and future predictions. Consulting with an advisor can help provide a clear understanding of your insurance needs and guide you towards the most suitable policy.

Several factors contribute to the cost of income protection insurance:

• Age: Generally, premiums increase with age. This is because the likelihood of health-related issues tends to increase as one gets older, thus posing a higher risk to the insurance provider.
• Occupation: The nature of your job is another key factor. High-risk occupations, such as mining or construction, typically attract higher premiums compared to desk-bound office roles.
• Health Status: Pre-existing medical conditions and overall health can impact your premium. For instance, if you have chronic health issues or a poor medical history, providers may adjust your premium accordingly.
• Percentage of Income Covered: Opting to cover a higher percentage of your income will likely increase your premium. This is because the potential payout from the provider would be higher.

Understanding how these factors influence your premium can guide you in making informed decisions about your policy and potentially help you manage the costs more effectively.

Yes, having a pre-existing medical condition does not automatically disqualify you from acquiring income protection insurance. However, the specific condition, its severity and how it’s managed can influence how providers assess your application.

In several cases, providers may still offer coverage, but the pre-existing condition will be excluded from the policy. This means that if you’re unable to work due to a related illness or complication, you won’t be eligible to make a claim. In other scenarios, providers may still cover the condition but at a higher premium to compensate for the increased risk. This is often subject to a careful review of your medical history or additional medical examinations.

The claim processing time for income protection insurance is not standardised and varies depending on several factors. Upon filing a claim, the provider typically requests the necessary documentation to validate it. This could include medical reports, proof of income and sometimes additional information about your circumstances. Gathering and submitting these documents can take time and directly impact the overall processing duration.

Once the provider receives all the necessary documentation, they will assess your claim. The complexity of your claim can influence how long this takes. Simple cases might be resolved within a few weeks, while more complex situations involving ongoing medical conditions or ambiguous circumstances might extend the process over several months.

When you’re setting up your policy, you choose the duration of this period, with options generally ranging from 14 days to 2 years. Your choice should ideally reflect how long you could sustain yourself financially during a sudden loss of income.

Consider your personal savings, sick leave balances and any employer-provided benefits when deciding on the waiting period. The aim should be to strike a balance between manageable premium costs and having sufficient coverage when you need it.

A change in job or occupation can impact your income protection insurance. This is because your occupation directly influences your risk level. If you transition into a higher-risk role, your provider may re-evaluate your policy and potentially increase your premiums to offset the heightened risk. Conversely, if your new occupation is considered less risky, you might be eligible for reduced premiums.

However, it’s worth noting that certain professions might not be covered under standard income protection policies. Thus, switching to such a profession without notifying your provider might compromise your ability to make future claims.