Mortgage versus super – a common dilemma
17th July 2024
Income Protection2
Income Protection Services Perth
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It’s time to stop worrying about what might happen if you can’t work. Put your mind at rest and protect your family with our income protection services.
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Income Protection
If you work you probably rely on your income to survive, and also that you will have it in the future. However, if an injury or sickness prevents you from working and earning a living, income protection can be invaluable.
Things don’t always go to plan, and having income protection – which is exactly what it sounds like – can provide valuable peace of mind and reassurance.
As a general rule, you can expect to have up to 80 percent of your salary covered by income protection in the form of monthly payments in the event that you can’t work.
Whether it’s paying your monthly bills, covering your rent or mortgage payment or simply being able to buy the groceries, this income protection can help.
If you rely on your income to make ends meet, as most of us do, then income protection is a must as it can ensure you still have money coming in even if you aren’t able to work. If you own a small business or are self employed, it can be especially useful.
Everyone’s income protection needs are different, and you have to determine what is the right level for you and your family. Several factors may determine the amount of income protection that you might need, although 80 percent of your salary before taxes is often the maximum amount that you can obtain insurance for. To ensure that you have the right amount of income protection to adequately protect you and your family, you should talk to your financial advisor.
Evidence of your illness or injury will need to be submitted to your insurance provider at the time that you make a claim on your policy. You can make sure your claim is dealt with as quickly and as efficiently as possible by providing all the requested information to the insurer.
Of course, it’s important that you fully understand the level and type of protection offered by your policy, and whether it is level or stepped. Protection may be offered for a certain specified time, such as up to the age of 60 or for two years, and may cover you for up to 75 percent of your gross earnings.
Any major events that take place between the time you apply for the insurance and the time the coverage begins will need to be brought to the attention of your advisor. If there are any factors that may influence the decision to provide you with coverage, you will need to let your life insurer know about them.
Your claim may be refused if you aren’t able to provide your insurance company with a detailed medical history, and most income protection requests will need that information. If you request life insurance again at some point, your claim may be refused if this information isn’t provided.