News Choosing the Best Income Protection Insurance

Tips for Choosing the Best Income Protection Insurance

Why you may need income protection insurance and how to decide which level of cover you want.

If you are like most of us, you work for a living. Your income and livelihood depend upon being able to work every day. Most of us take it for granted that we will continue to be able to get up and go to work tomorrow and for many tomorrows to come. But what happens if you get sick or injured so badly that you can no longer work?

Who is going to pay your mortgage repayment? Your car payment? Who is going to buy food and pay the utility bills? If you have income protection insurance, you may receive up to 75% of your weekly income while you are unable to work. There are many different levels of coverage available, with the cost of the policy generally rising as the length of cover does.

How is Income Protection Insurance Different?

Income protection cover provides regular payments if you become unable to work. This helps you meet your monthly expenses. Life insurance pays your beneficiaries: not you. Total and Permanent Disability only pays when your disability is permanent. Trauma insurance pays for specific events or illnesses.

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News Facts About Income Protection Insurance

Fast Facts: Income Protection Insurance

A basic guide with facts that can help you compare income protection insurance.

Income protection insurance is designed to help provide funds for you and your family in case you are unable to work for an extended period of time. Illness or injury can create a lot of unanticipated expenses, compounded by the fact that you are unable to produce income. You may have to take part in expensive rehabilitation and even reformat your home to make allowances.

Your spouse may have to take time off work to assist you in your recovery or you may have to hire a full time nurse. In addition, your daily household expenses are still there, such as groceries, utility bills, mortgage repayments and car loan repayments. With no income, this could be crippling to your finances. Luckily, protection is available in the form of income protection insurance.

The Elements of Income Protection Insurance

To compare income protection insurance policies, you need to know some basic facts. There are two main points that you will compare: the amount or percentage of your income that you will want to receive if you are unable to work for an extended period of time and the length of time you would like to receive it.

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News Income Protection Insurance for Subcontractors

Income Insurance for Subcontractors: What You Need to Know

Why income insurance is an important part of protecting a subcontractor’s assets.

Subcontractors find themselves in a unique position. They don’t have a boss or a regular paycheck, meaning that they don’t have access to workers’ compensation or sick leave. If they become too sick or injured to work, they don’t have a financial “cushion” upon which to lean on. That is why many purchase income insurance, or “income protection insurance.”

How Income Protection Insurance Works

Simply stated, if you are hurt or ill and unable to work, income protection insurance can replace as much as 75% of your income until you are able to go back to work. This comes in handy for feeding your family and paying bills while you are unable to produce income through working.

Every income protection insurance policy has three parts:

Benefit Amount

This is the amount of money you will

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News Don’t Skip Income Protection

Wishful Thinking Best Left to Others: Don’t Skip Income Protection

Why best case scenarios concerning income fail to protect your interests.

What is your biggest asset? Your home? Your business? Your yacht? No matter how many assets you have amassed, your biggest asset is your ability to earn income. Without the ability to earn income, the other assets are not possible unless you already have more money than you can ever spend.

Therefore, it is important to protect your biggest asset with income protection. Income protection cover protects you in the event you are unable to work due to injury or illness. Usually, it pays around 75% of your income until you can get back to work. Income protection cover is tax deductible and you can spend it on whatever you choose to spend it on.

Determining the Cost of Income Protection Insurance

Numerous factors go into determining the price of income protection insurance. Whether or not you smoke, your age, your gender, your occupation, your health, your income and the amount of desired coverage are all factored in to the price. Most people choose a financial planner to advise them on how much cover they need.

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News Comparing Income Protection Quotes: Know the Pitfalls

Comparing Income Protection Quotes: Know the Pitfalls

Many Australians purchase income protection insurance and think they are fully covered, only to find out that their policy only provided partial protection and that they don’t have enough to cover all of their expenses. While it’s great to compare policies, a lot of people look for the wrong things and end up making bad choices.

Here are some pitfalls of comparing insurance protection quotes.

Limited Payment Periods

If one is permanently disabled and can no longer produce income, they would expect to be paid for the rest of their lives. However, many policies cap payments to periods of one or two years. We won’t recommend any particular length here, but be sure that you know exactly how long you will be paid in the event that something terrible does happen to you and you can no longer work.

Note that payment is often capped depending upon occupation.

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News Income Protection Insurance with Financial Advisors Perth

How to Protect Your Hard-Earned Income

Have you ever stopped to think of what would happen if you suddenly had no income for three months? Six months? If the answer to this question disturbs you, it’s time to learn about income protection insurance. Income protection insurance pays you if you are unable to work for an extended period of time. This can help you with expenses that are crucial to keeping your home and providing for your family.

Who Needs Income Protection Cover and How Does It Work?

We recommend income protection cover for everyone whose ability to support their lifestyle is dependent upon them working to earn income. This can be someone with a small business that depends on their presence to function correctly. It is great for the self-employed and for those whose ability to work depends upon their physical health.

Income protection cover works exactly as one might think. If you are unable to work due to illness or injury, it pays you up to 75% of your current income. Income protection cover is 100% deductible. However, you must pay taxes on your income if you ever need to collect benefits.

Most policies have limits. For example, they will pay you until the age of 60 or for a set number of years. Your premiums may be stepped or level. A stepped premium means that your premium starts out lower and increases as you age. A level premium means that you pay the same amount of money each year. This ends up being more expensive in the beginning and cheaper towards the end.

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