Income protection insurance

There are two main types of income protection policy. The first is called permanent health insurance (PHI) – not to be confused with private health insurance that covers medical costs. PHI means you can protect a portion of your income – often of your gross salary – in the event of illness or an accident. Protect against accident and sickness, unemployment or both - tailor to your budget and needs.

Plans include a Your Own Occupation definition of disability, monthly benefits up to $ 10, a Guaranteed Insurability Option which allows the purchase of additional coverage without medical evidence of insurability, and Benefit Booster which increases disability payments eroded by inflation.

The deferred period is usually quite long, often a minimum of weeks but perhaps. If you suffer an income loss due to sickness or injury and can no longer cover your living costs, having income protection insurance is invaluable. Why get covered by income protection ? Income protection explained.

Having income protection means you’ll have money to help pay your debts and living expenses during your recovery from serious illness or injuries. You can claim the cost of premiums you pay for insurance against the loss of your income. You must include any payment you receive under such a policy on your tax return.

If the policy provides benefits of an income and capital nature, only that part of the premium attributable to the income benefit is deductible. This insures you for a set level of income and will pay you until you can return to work or for the agreed period – whichever is sooner. When purchasing income protection , consider what other types of life insurance you need as well, such as life cover and total and permanent disability cover. We’ll pay a monthly benefit into your bank account or credit card so you’re able to stay on top of bills and maintain your lifestyle while focusing on your recovery. Bill protection - this does exactly what it says on the tin - covers your monthly outgoings like.

What is income protection insurance ? It replaces part of your income - if you can’t work because you become ill or disabled. It pays out until you can start working again - or until you retire,. There’s often a waiting period before the payments start - you generally set payments to start. It pays a proportion of your lost earnings so you can concentrate on looking after your health. It makes sure you receive a regular income until you retire or return to work.

Also known as permanent health insurance , income protection insurance is different from critical illness cover, which pays out a lump-sum for a life-threatening illness. What does income protection cost, and how do your occupation, age, gender, and lifestyle choices affect your insurance premiums? Benefits from insurance protection policies are tax free as long as the money you use to pay the policy premiums originates from a taxable income.

This can be an enormous help to families who find themselves in unexpected circumstances. No medical tests needed to apply.

Apply for income protection online in a matter of minutes, you’re in control. Not to harp on, but we’ll also give you of your cash back on your first years premium. This money can be used for anything you choose.

It’s your money, your decision. Assured Futures is an independent insurance intermediary (a broker). We are paid a commission by the insurer for arranging the policy to cover the costs of advertising, sales, compliance and administration. For full details of what is included with the cover you are interested in applying for you should read the Product Disclosure Statement.

We also suggest that you talk to your tax adviser regarding the tax status of the policy premiums and benefits as they relate to you. And with regular money coming in, you can think about what’s best for your recovery. In an agreed value structure, the payout is based on your income at the time you apply.