Income Protection Insurance

If your lifestyle is fully or partially dependant on your ability to work, an extended absence through sickness or injury could be devastating to you and those who are dependent on you. Income protection insurance will replace your income up to the insured benefit amount of the policy.

Generally speaking the maximum cover you can affect is 75% of earnings (after business expenses, but before tax); however, ancillary benefits can be obtained on top of this to protect your superannuation contributions and also to protect you in case of a severe sickness or injury.

It is also important to remember that benefit payments usually do not start immediately; an excess or waiting period will apply during which no benefit is payable. The waiting period can be as short as 14 days or as long as two years with no waiting on accident claims. Once benefits start, payments are usually made monthly in arrears. The maximum period of time that payments continue is called the benefit period. A range of benefit periods are available — some as short as one year, with the longest continuing through to your 65th birthday. Coast & Country will help you to choose a policy that suits your needs and your budget.

This is an example of a 39 year old male who works in an office earning $80,000 per annum and is a non smoker.

He requires Income Protection to cover him for $4,000 per month to the age of 65 with a 30 day wait and includes a unique TPD option. His Premium is $74.87 per month. This type of insurance can usually be claimed as a tax deduction.

Specifically Income Protection can be varied by adjusting options to cater for your budget as well as your needs.

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• Superannuation
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