Are you properly insured?
You would not drive your new car without a cover note however most people do not insure the million-dollar driver behind the wheel. Research shows that less than 10% of Australians have adequately insured their most valuable asset, themselves. At Coeus Advisers we believe that all clients should have appropriate insurances in place to cover themselves in the event of illness, injury and death.
We will be featuring in our newsletters an ongoing series of articles explaining the different kinds of insurance cover available.
The first type of cover we will explain is income protection insurance.
If you suffer an illness or injury and you are unable to work then there can be a significant impact on your financial position. You may not be able to meet debt repayments. You will not be contributing to your retirement savings and may actually be drawing down on them. In some cases it can mean a significant reduction in your living standards.
Income protection insurance aims to provide some protection from these financial problems where you can’t work due to illness or injury.
What is Income Protection Insurance?
Income Protection insurance pays up to 75% of your normal income for a defined benefit period (to age 65) subject to meeting a waiting period (60 days) if you suffer an illness or injury and you are unable to work. The waiting period and the benefit period are defined in the insurance policy.
Why have Income Protection Insurance?
The purpose of having Income Protection insurance is to replace the income lost due to being unable to work. This will assist you in continuing to meet your ongoing obligations (such as loan repayments) without having to draw on other savings.
What factors affect the cost of Income Protection Insurance?
The cost of Income Protection insurance is affected by a number of factors including personal health (note smokers are charged at much higher rates), family health history and your occupation (blue collar workers generally have higher rates).
How do I apply for Income Protection Insurance?
Your application will be submitted to an insurer who will then ask for your full medical history and access to your doctor’s records. It is important to make full and accurate disclosure as failure to do would put any claim made under the policy at risk. The insurer may also require you to undertake a blood test which they will arrange with you before acceptance of the policy.
If you would like to apply for or have your insurance cover reviewed please contact Jodie Ryan of our office for an appointment.