Your ability to earn income is your most valuable asset.

How does Income Protection cover work?income protection - why do we need it

Income protection covers you in the event that you are unable to work due to sickness or injury. Income protection provides you with a monthly benefit when on claim and can pay you a benefit up to the age of 70.

What are the benefits of Income Protection?

  • Income protection is designed to help you meet regular financial commitments when you are unable to work.
  • Premiums are fully tax deductible.

How much does Income Protection cost?

The cost for income protection varies and depends on the amount of cover required, the waiting period and benefit period applied. For a 30 year old male, the premiums to protect a salary of $80,000 with a benefit period to age 65 would cost as little as $1.19 per day. The cost of the premiums is fully tax deductible.

I don’t think I can afford Income Protection with my current cash flow is there an alternative option?

Being able to properly structure cash flow is one of the key reasons most Australians fail to protect themselves and their families. With all my other bills and payments, how can I afford the premiums? An alternative option is to hold income protection inside your super fund.

It’s important to check what cover your super fund offers. A lot of super funds provide very basic policies that would make it very difficult to claim in the event of sickness or injury. It is best to speak with a professional from Watkins Financial Services to ensure your cover provides adequate protection.

Can’t private health insurance or Centrelink cover me?

Private health insurance covers you for certain medical bills. It doesn’t cover you for your day to day living expenses when you are unable to work due to sickness or injury.

Centrelink payments are means tested. Therefore if you have too many assets you may not qualify. For a single person Centrelink may only provide $12,922 per year. This is hardly enough to live off.

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Thomas Jacks BCom (Acc), SMSF SpecialistTM, Adv. Dip F.S. (FP)
“I want to be able to assist clients with their investment and retirement planning by providing real strategy advice. It’s my aim to not only help my clients but to educate them by addressing the entire picture” Google Plus

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