Income Protection
What is Income Protection?
Income Protection Insurance provides you with a regular source of income should you be unable to work for a period due to sickness or injury. You can generally insure for up to 75% of your earned income. There are a number of options available relating to waiting periods, benefit periods, early accident options and superannuation continuance. Payments are only ever made in accordance with the Insurers policy terms and conditions.
‘Insurable Income’ can be different to your earned income or taxable income and as such reference should be made to tax returns; tax returns are necessary proof of ‘insurable income’ if applying for an ‘agreed value’ policy. The Insurers Product Disclosure Statement includes a description of ‘agreed value’ and ‘indemnity’ policies.
Why do you need Income Protection?
- You like your lifestyle but don’t have never-ending savings to replace your regular income.
- To protect the income you earn.
- You have a family to provide for.
- You have debt that needs to be serviced.
- You don’t know when illness or injury might occur.
- Your business needs cash flow due to lost revenue when a ‘key person’ is unable to work due to accident or sickness.
If you would like to find out more about income protection insurance you can contact us here.