Income protection insurance is worth considering for all working people. It pays up to 75% of your salary for a period of time should you become unable to work because of sickness or injury. Income protection policies are available for salaried and self-employed individuals. Insurance premiums are usually fully tax deductible. Prestige Wealth Partners can help you select the most appropriate insurance cover for you and your family.

What will happen if you are temporarily unable to work?

Insurance is never a luxury

You may go for years without making a claim, then one day the unexpected happens. No one can eliminate the devastating emotional impact of serious illness, disability or death, but if you have to deal with money problems as well, the situation can be much worse.

Having money available when you need it most is what makes insurance so valuable.

There are four main types of personal insurance

• Life insurance: a cash lump sum payable on death to help support your dependants.
• Total and permanent disability (TPD) insurance: a cash lump sum to help support you and your dependants if you are totally and permanently disabled due to illness or injury.
• Income protection insurance: a monthly income stream to help support you and your family if you are sick or injured and can’t work.
• Trauma insurance: a cash lump sum to help support you and your dependants if you suffer a specified major medical condition.

Income Protection Insurance

Income protection insurance (also known as salary continuance insurance) pays a monthly benefit of up to 75% of your pre?tax salary if you are unable to work due to illness or injury. Income protection may pay benefits for temporary conditions that affect you for weeks or months as well as for long?term illnesses.

Income protection benefits begin after a predetermined waiting period that you nominate when you take out the cover. Generally, the longer the waiting period the lower the premium. The policy will continue to pay the benefit for as long as you remain unable to work – up to a maximum predetermined period. This can be a set time frame such as two years, or be age?based, for example up to age 60. Generally, the longer the potential benefit period, the higher the premium.

Income protection premiums are usually tax deductible as an expense incurred in earning your income.

Speak to Rebecca Newton and let Prestige Wealth Partners find you the most appropriate policy for you and your family.

For more information about income protection insurance – and any other form of personal insurance – please download the Personal Insurance Fact Sheet provided by Financial Wisdom or contact Rebecca Newton using the form below.

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