What stops you?

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If you are one of those people whose living and investments rely on your ability to earn income, then Income Protection Insurance is definitely for you. Only with one condition; “your health must allow it to be considered”.

Basically, income protection insurance is about insuring up to 75 to 80% of your before tax income against an illness or accident that can stop you from working.You can get your income protection cover inside or outside of your superannuation. However, terms and conditions, and benefit definitions would be different.
What determines the quality of an income protection cover;

  • the definition of the benefit
  • having it inside or outside of your superannuation
  • any existing medical condition of the insured person
  • In order to ensure your cover meets your needs , it is worth talking to a financial adviser.

    Experiencing an ill health or suffering from an accident is not anybody’s dream of lifestyle. However, it happens, and it can happen to anyone of us unexpectedly regardless of how fit you are or not. In case of it, the good thing is that you do not need to worry about how to pay your rent/ mortgage repayment, cover living expenses and medical cost. As your income protection claim payment kicks start after predetermined waiting period until either you recover and go back to work, or by the end of your predetermined benefit period which one occurs first. In general, the premium would be 2% of the insured amount and it can be tax deductible.

    Imagine not insuring your income at all. What would happen if you were not able to work due to illness or accident? Your income would stop compare to having your income insured and being able to get 75% of your gross income paid to you on a monthly basis until you recover or the end of your predetermined benefit period.

    income protection cover advantageSmart people make smart choices. Rather than having the possibility of losing 100% of their income, they spend up to 2% of their income to protect their income earning ability.

    If you do not have any income protection cover , YES, it is the best time of the year to get one. As you know the end of financial year is on the corner. What does it mean?
    Well, imagine you got your Income Protection Insurance NOW, you would be claiming your premium when you are doing your tax return in July. So certain percentage of money you have spent you will get it back sooner rather than waiting for 12 months.

    Feel free to contact Halle now for a 15 minutes obligation free consultation (the offer is valid by 21 June 2015).

    Halle Yilmaz is a financial adviser and business consultant. As a financial adviser, she gives solid advice that can create rapid and lasting results for her clients. Sign up for her free E-Book and download “7 Steps to Healthy Wealth Management.” Follow Halle on Twitter @halleyilmaz

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