Income Protection cover

What is income protection cover

Income protection {sometimes also known as sickness and accident} is a policy that pays to the insured a monthly benefit up to 75% of the taxable earnings plus any reportable fringe benefits in event of unforeseen accident or illness. Is 24/7 worldwide cover and predominantly tax deductable regardless of your occupation or employment status.

It is quite often required by contractors to fulfil a contract arrangement with an employer but should not be considered as part of your overall plan to secure your income and hard earnt assets.

The covers vary quite a bit between companies but should effectively be guaranteed renewable. Meaning you cannot have it cancelled by the insurer regardless of how many legitimate claims you make or how many changes in your health or occupation. It’s yours until you decide you do not need it anymore.

The premium in itself can also vary greatly and depends on several factors. The client’s age, smoking habits and occupation. Cover benefits can also vary greatly and can have yet another direct effect on the cost.

The amount of monthly benefit you are insured for, in conjunction with the waiting period (often 14, 30, 60, 90 days) will also effect the premium you pay. You should consider this for cost purposes but also take into account how long you can survive without income. And last but certainly not least the benefit payment period, usually 2 years,5 years or until Age 65. The less payment period the cheaper the cost.

It is a complex product and we recommend that you seek professional advice relating to this product as opposed to “going it alone” which all too often ends in disaster when a claim is denied.

Authorised Representative of PGW Financial Services Pty Ltd – AFSL 384713 ABN 15 123 835 441
Warning: General Advice only. Any advice stated above should be considered General Advice only and does not take into account your personal needs and objectives or your financial circumstances.  You should therefore consider these matters yourself before deciding whether the advice is appropriate to you and whether you should act upon it.
Contact us today for more information

Get a free quote

  • This field is for validation purposes and should be left unchanged.