While life insurance cover will provide benefits to your family upon your death, what happens if you can’t work because of illness or an accident and it’s going to take months to recover? Or maybe you can never work again and you’ve got school fees to pay, food to buy and a mortgage hanging over your head.
This is when you need income protection insurance, otherwise known as disability insurance. It’s estimated that you will earn around $1million over your working life, so it would be fair to say that your income needs protecting more than your home and your car. This is even more so, given that at the age of 35 you are 10 times more likely to be disabled than die.
Income Protection will pay a monthly benefit of 75% of your Pre-Tax income (maximum amounts apply). There is a range of options that can be considered to provide you with peace of mind. Your premiums are generally tax deductible.
Jenny (29) was enjoying a week’s holiday from her role as an investment analyst. She and 3 of her friends had decided to visit the snow during the peak of the season. While an accomplished skier, Jenny hadn’t considered the crowds of beginners on the slopes, in particular one new snow border that crashed into Jenny, sending her flying down a black run!
The combination of two broken ribs, a fractured pelvis and a punctured lung, extended Jenny’s absence from work from a week’s holiday to four months sick leave. And because the accident hadn’t happened at work, Workers Compensation didn’t cover her.
Luckily, Jenny had taken out an Income Protection policy 12 months earlier. She received the equivalent of 75% of her income for the 15 weeks she couldn’t work. This allowed her to keep up with her rent and car payments without having to dip into her savings, or borrow from her parents. Provided by CommInsure Claims.
To make an appointment to discuss your Income Protection needs please contact us directly on (07) 3286 1322 or email us.
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