Income Protection Insurance
Income protection insurance is designed to insure your future earnings from your inability to work due to illness or injury, but will not cover you for redundancy or periods of unemployment. Income protection insurance is ordinarily for an amount of 75% of your assessable income and is normally payable to age 60 or 65.
For younger clients their future income earning capacity may well be their most important asset and it is critically important that this asset is protected.
Premiums for income protection insurance are tax deductible as any income received if the policy is claimed represent assessable income.
One important factor to consider when applying for income protection insurance is the waiting period. The waiting period refers to the time between your disability and when the insurer will begin to pay a benefit. The longer the waiting period selected the lower the premium. Generally we recommend a waiting period of ninety days as income protection insurance is designed to insure you against a lengthy period without income.
However once again it depends on your individual situation.
Trauma / Crisis Insurance
Trauma insurance pays a lump sum if the insured suffers from any one of the trauma events as listed in the policy. A common trauma event is a heart attack or cancer however there a range of circumstances that will give rise to a payment under a trauma policy.
Generally trauma insurance is not tax deductible and in the majority of cases trauma insurance should be held in an individual’s name.