Income Protection Insurance
As our income is our biggest asset, it is extremely important that this asset is protected. Income Protection provides regular payments in the form of a monthly benefit, to help meet your financial commitments if you are unable to work due to sickness or injury.
Income Protection Insurance is usually limited to 75% of a person’s salary, or in the case of self-employed persons, their gainfully earned taxable income.
Your monthly benefit is based on 75% of your gross income & a waiting/benefit period is a strategic decision based on your personal circumstances.
If there is a major health event Income Protection can work in conjunction with Total and Permanent Disability and Trauma cover. Income Protection will maintain your daily expenses with the lump sum cover designed to provide invaluable funds for medical expenses, kids upbringing, mortgage or lease repayments most of us have.
The waiting period before benefits are paid will also alter the premium for Income Protection Insurance. A short waiting period is generally designed to suit those who could be in financial difficulties very quickly if there income stream stops. Your sick leave and annual leave entitlements should be taken into account when deciding the appropriate waiting period.
Benefits are paid on an ongoing basis once the prescribed waiting period has been served, and continues to be paid on a regular basis whilst you are disabled (as defined in the policy), until such time as the maximum benefit period has expired. In some situations, a lesser benefit may be payable if you are only partially disabled, for example, you can return to work but only for a limited time each week.