Protecting Your Future Earnings

A key component of building a future of financial security is your ability to earn an income. Your ability to earn an income is your most valuable asset.

Amazingly, 83% of Australians say they have insurance for their car. Only 31% insure their ability to earn an income with income protection insurance.

While most of us only feel the need to insure our income when we buy a house or start a family, the truth is the need to feel successful and financially independent starts at a much earlier age. As injury and illness can strike at any age it is important to ensure your ability to earn an income is not affected by the unexpected, and your plans for the future and your financial stability are not derailed due to accident, illness or injury.  

  • Income protection pays you up to 75% of your income if an illness, injury or accident prevents you from working.
  • You can guarantee your current level of income until retirement with an agreed value policy.
  • The premiums are tax deductible and you can own and pay for it personally or inside super.

Without income protection your most valuable asset is also your most vulnerable. With income protection the monthly benefits will help keep you on track to financial freedom.

Did you know that most insurers give you income protection of up to $10,000 per month without medical tests if you’re under the age of 45?

IT’S ALL ABOUT THE EXTRA BENEFITS

Income protection policies through a Group Employer super fund or a direct provider that you might learn about on TV rarely stack up against Retail Income Protection polices when you consider the ancillary benefits available.

CASE STUDY BY TAL LIFE

Individual with an Income Protection Policy that has a Monthly Benefit of $5,000 after a 30 day waiting period, suffers a motorbiking accident in Bali and was totally disabled for 6 months

You might expect a total payment of 6 * $5,000 = $30,000 for the time off work – but the additional benefits that apply in RETAIL policies really makes a difference:

Benefit Type Benefit Calculation Benefit Paid
Retirement Optimiser – Covers lost employer contributions to super Extra 10% of usual salary paid to regular super fund over the 6 months $4,000
Overseas Benefit - Reimburse cost of returning to Australia up to three times the benefit amount $3,000
Family Support Benefit - when a family member stops work or a registered nurse is required three months from MONTH TWO TO MONTH FOUR $15,000
Child Care Benefit up to $500 per month while totally disabled $3,000
Rehab Benefit - increase cover by 50% of the benefit amount if a pre-approved rehabilitation program is undertaken Can be up to 12 months –in this case the period was for 3 months $7,500
Rehabilitation expenses – Reimburse costs of rehabilitation Can be up to 6 times the benefit amount -In this case it was $500 per month for months 4 – 6. $1,500
Return to Work Benefit – Reimburse costs up to 6 times the benefit amount

paid 3 payments of the benefit amount while back in months 8, 11 and 14.

$15,000