Income Protection Insurance

What are the chances?

Australians aged between 30 and 64 have a one in three chance of suffering a major illness (e.g. cancer, heart disease).

It is estimated that 30,000 Australians were injured and required hospital treatment as a result of a motor vehicle accident in 2002.

How would your family survive, pay their ordinary day to day bills, mortgages, school fees and other commitments if your income stream stopped due to accident or illness?

No one enjoys paying for insurance –but everyone is glad they have, if they have to make a claim.

Your income is one of the most important assets you own and therefore an essential asset to insure.  Income Protection insurance is designed to ensure you are able to meet your everyday living expenses, by replacing up to 75% of your gross income, often up to the age of 65, providing valuable income if you are ever unable to work due to injury or illness.  Income Protection insurance generally costs between 1-2% of your gross salary.  Premiums are based on your age, sex, smoking status, occupation and salary level.  Other factors that affect the cost include:

  • The waiting period (which is the length of time you need to wait before you are able to make a claim on your policy, the longer you wait the cheaper the cover and the greater your reliance on your savings to fund your expenses), and
  • The benefit period (the duration of your benefit payment, e.g. 2 years or until expiry age of 60 or 65).

The table below shows just how much an average Income Protection insurance policy costs compared to other commonly insured items:

House Value & Contents $260,000 Insurance $600 pa
Motor Vehicle $30,000 Insurance $1,000 pa
Income to age 65* $1,947,173 Insurance $855 pa

*based on 40 year old man earning 60,000 p/a
Between the ages of 20 and 50, a working person has a one in three chance of being off work for more than three months due to accident or illness.  Income Protection insurance ensures that should you ever be unfortunate enough to fall into this category, your income will be secure.

We can advise you on assessing the risks and offer cost effective protection against their potential impact.

Please call us to discuss these products.  Premiums are tax deductible.