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Income Protection Insurance

Did you know that whilst 83% of people insure their cars, only around 30% insure their income?

Think about what would be more valuable to you. 

Income Protection policies can replace up to 75% of your gross income if you're unable to work due to sickness or injury.  And importantly, currently the cost of that cover can be tax deductible.

Being healthy day in and day out, year after year of your working life is a pretty tall order.  And like most of us you probably succumb to the odd day off now and again for minor ailments.

But what if a more severe sickness or injury prevented you from earning an income for a longer period of time - weeks, months or even years?

How would you keep up your mortgage payments, school fees, running the car, credit cards, everyday living expenses such as food, clothing, phone bills, gas, electricity and child care.  Not to mention medical expenses that your health fund simply doesn't cover.

Which is why we would like you to take a moment to consider Income Protection Insurance.

Income Protection is designed to pay a benefit if an insured event occurs, for example, you are severely disabled due to sickness or injury.

Case Study - Mark's Story

Electrician Mark Bonetti was running his own successful business and had established a reputation for reliability.

Mark found himself spending more time managing the business than fixing people’s wiring.

To help sort out his finances, he decided to see a financial adviser.

After a comprehensive financial needs analysis, Mark took out an Income Protection policy.  3 years later he suffered a serious knee injury playing football.

Mark was keen to keep an eye on the business but was worried that if he went into work at all, he might lose his benefits.

Fortunately, the Income Protection policy he was recommended offers a unique “10 hours” definition for severe disability.  Mark satisfied this definition and was allowed to work up to 10 hours per week allocating jobs and quoting without jeopardising his entitlements.  Any income he generated in this period was not offset against the benefits he received.

For the first 3 months after the waiting period, Mark received full benefits.  He was then able to work 20 hours per week for the next 2 months and was paid partial disability benefits.  Mark made a full recovery and was able to return to work full-time.

While this is not a real life case, some details are drawn from an actual claim.

The “10 hours” definition meant Mark could take care of his business and still receive his benefits.