Income Protection Insurance
Have you ever considered your income-earning ability may be your
most valuable asset?
After all, your entire lifestyle depends on your income - where you
live, what you choose to spend and what you do.
As a consequence,
Income Protection Insurance (also known as Income Replacement,
Disability Income or Salary Continuance) could be your most important
form of insurance. Income Protection Insurance provides you with a
monthly payment if you are unable to work due to sickness or injury.
As with all personal insurance, Income Protection Insurance helps
protect you from financial disaster. It's particularly important if you
have obligations such as a mortgage or other debts that you would
struggle to repay without your income. It is also important for
self-employed people who do not have the protection of an employer to
provide any sickness benefits.
Definition
Income protection
insurance that will pay a regular income to a person if they are
disabled by a sickness or accident. The maximum benefit covered is
usually 75% of gross income after business expenses.
Purpose
- To continue an income stream in order to repay debts and maintain current
lifestyle
- To provide the ongoing ability to maintain other protection, savings,
investment and retirement plans
Taxation
Premium can be tax deductible if the person is normally
eligible for a tax deduction for their superannuation contributions. For
example, a self-employed person. Benefits are not taxed if within a
person's Pension RBL. Lump sum tax applies if benefits are paid to
non-dependants.
Target Market
Everyone who relies on a regular
income to live and to pay off life's necessities, particularly the self
employed.
How much cover should you have?
The amount of income
protection insurance you need will be determined by the salary you want
to insure. Generally income protection provides cover for about 75% of
your salary in the event of illness or injury preventing you from
working.
You need to consider what the costs are of meeting a mortgage
and other debts; providing for a spouse, children or other dependents;
and maintaining your assets and investments. Remember the point of
income protection insurance is to provide an income stream if you can no
longer work.
How to apply
To apply for Income Protection Insurance,
contact Austbrokers Countrywide for an application
form.
Complete the Sum Insured Checklist.
Transfer your existing
policy to Austbrokers Countrywide
If you are not getting the type of
service you expect maybe you should consider a change and utilise the
services of our experienced and professional advisory team.
By transferring your existing policies under our management you are
entitled to the following services.
- Initial Full Insurance Review
- Annual Individual Insurance Comparison Report
- Advisory Hotline for all Personal Insurance enquiries
- Claims Assistance
- Insurance Advice for Family & Friends
Remember this is a free service if you transfer your policy to us.
Simply call Austbrokers Countrywide on 1800 245 123 or email us at
riskmanagement@abcountrywide.com.au.
Page updated: 13/10/08 |
