When deciding on Income Protection Insurance there are a couple things to consider. If you are starting a policy when you are under 40 years old versus starting a policy when you are 58 will have dramatic implications on the income protection insurance premium. The same applies if you are a 40 year old who decides to get income protection insurance but then you elect to go for the less expensive option which is not to lock in the premium for a period of time to save the initial cost. We can help you work out the various factors that make sense to you to mitigate the costs, find tax savings and ensure that you have the best possible income protection insurance for your family.
Will your family be protected financially if something happens to you?
Many people simply do not think about, or prepare for, the financial consequences of unexpected events such as the serious illness or death of a family member. If your family depends on your income to help pay the weekly bills and service large debts such as a mortgage or personal loan, now may be a good time to consider taking out life insurance.
No-one can eliminate the devastating emotional impact of coping with serious illness, disablement or death, but if you have to deal with money problems as well, the situation gets much worse. Knowing that your insurance policy will provide a specified lump sum to your dependants if you die or become disabled gives you peace of mind that your family will be protected.
Here’s a useful tip. For some types of insurance, it is possible to pay the premiums automatically from your superannuation fund. This is often a more affordable option because you are paying with pre-tax money. In addition, using funds that are normally inaccessible until you retire means you don’t have to dip into your daily living budget to pay for the insurance.
If you’d like advice on whether you need insurance, or the best type of insurance protection for you and your family, simply give me a call on [insert phone number] to arrange an appointment. This short meeting will not cost you anything and there is no obligation to go any further. I look forward to hearing from you.
Income Protection - Helping You Cope Financially
Would you cope financially if you lost your job or couldn’t work for an extended period?
Most people are not prepared for the financial consequences that can follow unexpected events. If a couple who both worked full time and had two children suddenly had to survive on one salary, this would have a significant impact on their ability to meet mortgage repayments and other daily expenses.
Research has shown that one in three Australians is likely to be out of work for at least a three-month period at some stage during their life. Yet five out of six Australians do not protect their income.
Income protection insurance is one way to safeguard your financial situation in case of an illness. It pays you a monthly amount until you return to work.
More affordable than you think
Today, income protection insurance is less expensive and has more extras and flexibility than in earlier years. Also:
• premiums are generally tax deductible
• most policies pay a benefit of up to 75% of your salary
• payments can continue until you reach age 65.
We have been advising our clients on their insurance needs since 1987 years. At no cost to you, I would be happy to evaluate your situation to see whether income protection insurance would be beneficial. If you’re already insured, I can review your policy to check it provides you with adequate cover.
If not you, perhaps you have children who are working?
Maybe your financial situation is secure but you have children who are working and have debts, yet do not have the financial resources to support themselves should something happen. Now may be a good time to suggest they contact me to discuss their situation.]
To discuss your insurance needs or find out more about income protection insurance, simply give us call on to arrange an appointment. This short meeting will not cost you anything and there is no obligation to go any further. I look forward to hearing from you.
This page contains financial product advice of a general nature only and is not intended to constitute personal advice. It does not take into account your particular investment objectives, financial situation or needs and, accordingly, you should consider the appropriateness of this information in light of your own circumstances. We recommend that you obtain professional advice. Where appropriate, you will be provided with a Product Disclosure Statement in relation to the product recommended to you. You should consider this document before making any decision to acquire the product in question.
[1] Institute of Actuaries of Australia, Report of the Disability Committee, 1993, 1995, 1997.
[2] ACNielsen Omnibus Income Report, commissioned by Commonwealth Bank of Australia, February 2006.
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