Forums / Property Investing / Help Needed! / Income Protection??

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  • Profile photo of gatsbygatsby
    Member
    @gatsby
    Join Date: 2003
    Post Count: 708

    Hi,
    Something that I've been considering to getting around to doing but just haven't as yet. Can anyone please tell me where I would be best at finding who offers income protection? People who have mentioned it to me have stated annual costs ranging from $900 to $2500? What does this form of insurance actually offer in terms of my job? I just don't know where to start looking for this form of protection. Many thanks for reading.
    Cheers,
    Gats! 

    Profile photo of andrew dwyerandrew dwyer
    Participant
    @andrew-dwyer
    Join Date: 2007
    Post Count: 21

    Hi Gats,

    Ok here is a defintion of Income protection insurance

    Also known as 'income replacement', 'disability income' or 'salary continuance'.

    Income Protection is Insurance that will pay a regular income to a person if they are disabled by a sickness or injury. The maximum benefit covered is usually 75% of current personal exertion income after business expenses but before tax.

    The purpose of Income protection:

    To continue an income stream to meet personal and daily living expenses.

    To provide the ongoing ability to maintain other protection, savings, investment and retirement plans

    Premiums are generally tax deductible. You can obtain income protection through various financial institutions. Feel free to email me if you would like more information or visit our website http://www.financialaspects.com.au  

    Profile photo of FinSpecFinSpec
    Member
    @finspec
    Join Date: 2009
    Post Count: 137

    Hi there!

    I work in a financial planning firm, and we often recommend income protection to our clients.  If you want some more specific information so you can have a good idea of what you should be looking for, we've got a fair bit of material that you can have a look at. 
    We also have software that will rank just about every income protection policy (and other insurances for that matter) in terms of quality, price, options etc for your particular age and risk category.
    Protecting your income is a very smart thing to do – but it's not for everyone.  Andrew's explanation above is spot on the money, so no need to repeat!
    So, just message me if you want me to send anything through to you. 

    FS

    Profile photo of maree_bradrossmaree_bradross
    Member
    @maree_bradross
    Join Date: 2007
    Post Count: 401

    You can quite often elect income protection through your superannuation.

    Profile photo of andrew dwyerandrew dwyer
    Participant
    @andrew-dwyer
    Join Date: 2007
    Post Count: 21

    It's exactly the same process though. Difference being the premiums are paid by your superannuation fund as apposed to coming out of your cashflow. Bear in mind it's only tax deductible if paid from your cashflow. There are advantages and disadvantages to both options.

    Profile photo of gatsbygatsby
    Member
    @gatsby
    Join Date: 2003
    Post Count: 708

    Thanks to the above for replying to my question. PM incoming.
    Cheers,
    Gats!

    Profile photo of karen.karen.
    Member
    @karen.
    Join Date: 2009
    Post Count: 196

    Check your superannuation details.  My husband has adequate income protection cover with his superannuation.   We didnt even know about it until we saw a financial planner and he looked over everything.  (we never read it – ooops!)

    Profile photo of gatsbygatsby
    Member
    @gatsby
    Join Date: 2003
    Post Count: 708

    Thanks Karen but I don't have a SMSF.
    Cheers,
    Gats!

    Profile photo of KennyjaizKennyjaiz
    Member
    @kennyjaiz
    Join Date: 2009
    Post Count: 69

    Hi Gats,

    Karen is correct.
    You should check your superannuation statement to see if you already have adequate income protection. It doesn’t need to be a SMSF, it’s a general option provided by most superannuation funds. If you are unsure, check with your accountant.

    Note also, it maybe tax effective to pay for income protection insurance premium in your superannuation fund, as the insurance premium maybe allowable tax deduction towards your income tax.

    Cheers,
    Kenny

    Profile photo of gatsbygatsby
    Member
    @gatsby
    Join Date: 2003
    Post Count: 708

    Thanks Kenny and Karen. I didn't realise that . I'm with VicSuper and will check it out !
    Cheers,
    Gats!

    Profile photo of KennyjaizKennyjaiz
    Member
    @kennyjaiz
    Join Date: 2009
    Post Count: 69

    Gats,

    VicSuper offers income protection insurance.
    http://www.vicsuper.com.au/www/html/60-insurance.asp

    Cheers,
    Kenny

    Profile photo of andrew dwyerandrew dwyer
    Participant
    @andrew-dwyer
    Join Date: 2007
    Post Count: 21

    All superannuation funds offer some form of income protection/salary continuance. The amount and benefit period depends on the fund. Generally unless your super fund is an employer sponsored fund you will not have income protection automatically attached. My wife is with VicSuper and has income protection through her fund, this was not automatically attached though.

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