Why Do I Need Income Protection Insurance?
Income protection Insurance gives you financial protection if you are disabled through injury or sickness and are unable to work. If this happens, the insurance pays you a portion of your monthly income. This helps to minimise the effect on you, your family and on your lifestyle caused by your sickness or injury.
Thousands of Australians experience a heart attack or major illness each year. These events are stressfull and can also be a financial drain. Income Protection Insurance can ease this burden, paying you a lump sum if you are diagnosed with specific conditions.
Insurance is a flexible and useful tool that can be adapted to suit your needs at each stage of life. In determining the amount of insurance required, you should consider your family commitments, and your business responsibilities. You should also consult your personal financial adviser to ensure your income benefits meet your current and ongoing needs.
Income Protection can replace up to 75% of your regular income if you’re unable to work due to illness or injury. It can also cover your regular superannuation contributions if the Super Continuance Option is selected.
You can customise your protection and premium by choosing your waiting period, benefit payment period and how much of your income you will insure. Premiums are generally tax deductible, depending on your individual circumstances.
Business Overheads Cover is a form of income protection that helps pay for business expenses if you can’t work due to sickness or injury. It’s tailored to those who are self-employed and not working from home or who are part of a small business with no more than five employees. It covers most regular, fixed operating expenses of your business.
For complete wordings for any product please read the Product Disclosure Statement, found by clicking on the company logo to the left of the screen.
Duty Of Disclosure
Before you enter into a contract of insurance with an insurer, you have a duty, under the Insurance Contracts Act 1984, to disclose to the insurer every matter that you know, or could reasonably be expected to know, is relevant to the insurer’s decision whether to accept the risk of the insurance and, if so, on what terms.
If you fail to comply with your duty of disclosure and the insurer would not have entered into the contract on any terms if the failure had not occurred, the insurer may avoid the contract within 3 years of entering into it. If your non-disclosure is fraudulent, the insurer may avoid the contract at any time.