Income Protection

What would you do if you develop a long term illness and are unable to get back to work?  Have you made plans for your financial back up?

What if you have a mortgage to pay, family to feed and no one else to earn the money?  How will you continue your lifestyle without your income?

Wouldn’t you like it if, while you are sick and lying on your bed at home, your income is still coming into  your bank account even though you are not working? That’s what income protection does for you at the time of claim.

Income Protection will pay a monthly benefit into your bank account based on the policy that you chose to take.

There are two types of policies.  Agreed Value and Indemnity Value.

Agreed Value Policy 

If you choose this, you will need to provide proof of your income at the time of application. Based on the entire assessment the insurance provider will agree to pay 55% of your wages on a monthly basis if you are unable to get back to work due to sickness or disability. The insurance provider will start paying this benefit after the waiting period selected in your policy. Generally this policy suits people who are in self employment or have their own business due to the volatility in their earning.

Indemnity Value Policy

 If you choose this, you will need to provide proof of your income at the time of claim. Based on the entire assessment the insurance provider will pay 75% of your wages on a monthly basis if you are unable to get back to work due to sickness or disability. The insurance provider will start paying this benefit after the waiting period selected in your policy. Generally this policy suits people who are in fixed employment and earning fixed salary. However lots of employed people do prefer to go with agreed value policy due to the volatility in their bonus and commission.

Waiting Period

The waiting period is an important part of your policy. Generally with most insurance providers, the waiting period choices are 4 weeks, 8 weeks, 13 weeks and so on. For example, when you select 4 weeks waiting period the insurance provider will start paying the benefit after 4 weeks on a monthly basis based on the policy you chose. The most important factor is that the higher the waiting period you choose the lower the premium you pay.

Discuss with us and we will assist you.