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Income Protection Insurance - A Trusted Friend

Income Protection - not now please? Can't you see I have other priorities right now?

AFTA @Work Newsletter - Gow-Gates Insurance Brokers Income Protection Insurance

You are thinking that something's got to give and often it’s the item you need the most that is sacrificed or put off until a later date when hopefully you are still enjoying good health.

That item is Income Protection Insurance a must have for all self-employed and salaried or wages employees.

Where else can a modest financial outlay which is invariably tax deductible replace most of my income right through to retirement if needed?

It is tempting to put if off until later when things settle down and when my income is more consistent and after I meet other one off expenses. Sadly it only takes a short stroll around a hospital ward to see that other people may have had `the same approach’, yet their working lives have been interrupted in the most savage way through illness, injury and disablement.

Good advice says that we should consider "locking in" an income protection policy early when premiums are lower, supported by a generous tax deduction for most policy holders, and when we might be more healthy without the uncertainty of “amended terms” and higher premium costs later when our health may not be the best.

If this is a decision you have put off until now it is not too late to effect income protection insurance. With the various options and alternatives available insurance can be designed to address your particular circumstances.

Income Protection - What's in it for me?

Income Protection insurance as you can see is designed to provide you with a regular income in the event that you are unable to work due to sickness, or injury. The regular income is paid during the period of disablement for up to a pre-determined and agreed benefit period. Typically the amount payable is up to 75% of your income.

There are a number of options that can be selected relating to the waiting period and the benefit period. The waiting period is time you must be off work consecutively before you are eligible to lodge a claim, while the benefit period is the length of time the benefit will continue to be paid dependent on the period of your incapacity.

The recommended cover will provide you with replacement of income in the event of a shorter or longer term disability and it is therefore regarded as the cornerstone of any financial plan for the future.

Many business owners choose a combination of income protection insurance with a business expenses cover option included. Business expenses are paid for up to one year and your income protection benefit goes for much longer if needed.

Are there any hoops to jump through?

Generally speaking there are few hoops to jump through unless the application is for a large amount of cover.

  • Most insurers have lifted the limits on the sum insured before a blood test or medical exam is required. Oftentimes for a monthly benefit of less than $7,500 (which equates to an annual income of $120,000) there is no mandatory blood test required.

  • A mobile service can be arranged if a blood test is required and a specialist will come to visit you at your convenience at the cost of the insurer.

  • Pre-existing conditions will be reviewed at the time of considering insurance

Income Protection may only be one piece of the risk protection jig saw puzzle, so all the more reason to seek advice for your own circumstances as each Travel Business Owner or Employee’s circumstances are quite different from each other.

Speak to one of our experts - Kevin FeaverFor more information and an analysis of your circumstances you can contact:

Kevin Feaver
- Gow Gates Financial Services
(02) 8267 9951

Gow Gates Financial Services has been in the business of providing insurance advice to business owners, the self-employed and salaried employees since 1964. We are proud to have been specifically aligned to the Travel Industry for many years now.

Gow-Gates Client Trust Account Fidelity Insurance Policy

Gow-Gates Financial Services Pty Ltd (ABN 97 001 250 344) is an authorised representative of Apogee Financial Planning (ABN 28 056 426 932), an Australian Financial Services Licensee with its registered office at 105 – 153 Miller Street, North Sydney NSW 2060.

Disclaimer: The advice in this article may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. Please seek personal financial advice prior to acting on this information.