INCOME PROTECTION

If asked to name your greatest financial asset most people would say their home. Or perhaps their car.
But in fact, your greatest finanacial asset is neither of these. It's something far more fundamental to your material security. Something on which all your material assets ultimately depends.
Income Protection is designed to protect your financial security by providing you with a replacement income when ever you are Temporarily disabled through injury or sickness and cannot work.

Arguably your greatest asset is your ability to earn an income.

Easily Lost One irony of this is how easily your greatest asset can be lost. A serious injury or illness could put you out of the work force over night, on no pay. The average duration of disabilities, greater than three months is a frightening 12 months. Many go on much longer. Some last for life. And no fewer than one in three Australians will become victims during their working lives. The chance of a disability occurring is over twenty times the chance of dying if your under age 65. Throughout this year one in every twenty Australians will suffer a disability.

 

Uninsured The second irony is this: Almost certainly you insure your home and your car. But if you're like most Australians you haven't insured your ability to earn an income. 

Even though it's the greatest - and most vulnerable - asset you possess.

Check Your Super Fund Some superannuation schemes do include proper disability insurance. Check yours very carefully and make sure that your income earning ability is covered.

 

Workers Compensation:- It falls short of being a comprehensive cover. If you're self employed, you probably aren't covered. The amounts it pays are quite small. And it usually covers you only for accidents at work (and sometimes travelling to and from work) and work related illnesses. But statistics show that three out of four disabilities are caused by illness.

And if the illness isn't work related - which very few are - it's not covered by worker's compensation at all. 

Social Security:- The maximum benefit is only around 25% of the average weekly earnings of an Australian employee. Could you live on that?

Tax Deductible:- The cost of your income protection policy will generally be an allowable deduction as an expense from your assessable income, under section 51 (1) of the income tax assessment act. This means that the actual cost to you of disability cover can be as little as just over half the cost of the premiums paid under the policy. (Depends on your marginal rate of tax that you are on.)

If you are the policy owner this deductibility applies regardless of whether you are self employed or an employed person.

The above tax information is a general statement only. it is based on the continuance of present tax laws and their interpretation. Individual circumstances may differ from this general statement. We recommend that you discuss any questions that you might have with your tax advisor. 

Some Key Features of Income Protection

  1. World wide cover, 24 hours a day, 7 days a week.

  2. Guaranteed renewable.

  3. Waiver of premium while on claim.

  4. Rehabilitation expense benefit.

  5. Replaces up to 75 % of your income and sometimes more.

  6. Will pay a monthly benefit in the event of a claim.

  7. Can be tailored to suit your cash flow.

  8. Premiums can be paid monthly, quarterly etc. ( to many to mention )

Insurance Analysis:- If the insurances described on these pages are of interest to you, don't hesitate to contact New Wealth Directions to provide an Insurance quote for you. If you already have Insurance, we can do a review of your current Insurance policies. Usually we can save 30 - 40% from your current premiums.