"I'm protecting my income in case I can't work."

"I'm protecting my income in case I can't work."

Income Protection

I’m protecting our lifestyle.

Insuring your income provides you the peace of mind that your family and lifestyle will be financially protected if you are unable to work due to illness or injury while you focus on recovery.

What is Income Protection?
If you can’t work due to illness or injury, income insurance can provide you with a replacement income of up to 75% of your employment-related earnings until you are able to return to work.
What are the benefits?
Income insurance premiums are tax deductible. Also, the versatility of income insurance means the payment you receive, should you make a claim, is yours to spend as you choose.1
Counting the cost
Are your house and contents insured? What about your car? If you go overseas do you take out travel insurance? Most of us recognise the importance of protecting the assets we have accumulated over the years and rightly so, as we’ve worked hard to get them. But have you ever thought about protecting your ability to work? After all, it’s your income that enables you to own a house, maintain a car and take holidays.
How much does it cost?
Your insurance premium will be based on your age, smoking status, gender, occupation, health and the amount of cover you choose. Your financial adviser will develop a plan to suit your budget and explain the options of funding your premiums both inside and outside of superannuation.

Sick leave entitlements—typically covers salaried employees for 12 days absence a year due to illness or injury. Sick leave is a type of personal leave that employees can take when they can’t attend work, because they are sick or injured.

Workers compensation—covers workers for injuries only associated within the workplace and does not cover you for illnesses. However, serious accidents can also occur outside the workplace, leaving those without income insurance cover vulnerable.

Private health cover—most Australians over 30 have some level of private health insurance, but this cover is limited to medical expenses, eg hospital stays, and does not extend to general living expenses such as groceries, utility bills and mortgage repayments.

Social security—the funds available from the Government should not be treated as a solution and most benefits are assets and means tested. Centrelink will pay a maximum disability support pension of $873.90** per fortnight for singles and $658.70** (each) for couples.3 Depending on your current lifestyle, this may not be enough to cover your immediate needs.

It won’t happen to me Having an illness or getting injured is not something we like to think about, however, the harsh reality is that it can happen to anyone. Research shows that illnesses and injuries don’t just affect the elderly.

− Cardiovascular disease affects one in six Australians.4 − Every day, over 65 families are impacted by an event that seriously affects their ability to earn an income.5 − Stroke kills more women than breast cancer and more men than prostate cancer.6 − In 2013–14 about 531,800 people experienced a work related injury or illness—around 39% received no financial assistance.7

3 Department of Human Services. (2015). Payment rates for Disability Support Pension. Note: These rates are subject to change. 4 Heart Foundation. (2015). Information for professionals – Data and statistics. 5 Investment and Financial Association of Australia, and Lifewise. (2 March 2010). Media release: First-time ever figures. 6 National Stroke Foundation. (2015). Tools and resources: Facts and figures about stroke. 7 Australian Bureau of Statistics. (24 November 2014). Work Related injuries Australia (cat. no. 6324.0).

 

1. Your benefit amount will be assessable for tax
** Amounts as of 16/05/2016

What is Income Protection?
If you can’t work due to illness or injury, income insurance can provide you with a replacement income of up to 75% of your employment-related earnings until you are able to return to work.
What are the benefits?
Income insurance premiums are tax deductible. Also, the versatility of income insurance means the payment you receive, should you make a claim, is yours to spend as you choose.1
Counting the cost
Are your house and contents insured? What about your car? If you go overseas do you take out travel insurance? Most of us recognise the importance of protecting the assets we have accumulated over the years and rightly so, as we’ve worked hard to get them. But have you ever thought about protecting your ability to work? After all, it’s your income that enables you to own a house, maintain a car and take holidays.
How much does it cost?
Your insurance premium will be based on your age, smoking status, gender, occupation, health and the amount of cover you choose. Your financial adviser will develop a plan to suit your budget and explain the options of funding your premiums both inside and outside of superannuation.

Sick leave entitlements—typically covers salaried employees for 12 days absence a year due to illness or injury. Sick leave is a type of personal leave that employees can take when they can’t attend work, because they are sick or injured.

Workers compensation—covers workers for injuries only associated within the workplace and does not cover you for illnesses. However, serious accidents can also occur outside the workplace, leaving those without income insurance cover vulnerable.

Private health cover—most Australians over 30 have some level of private health insurance, but this cover is limited to medical expenses, eg hospital stays, and does not extend to general living expenses such as groceries, utility bills and mortgage repayments.

Social security—the funds available from the Government should not be treated as a solution and most benefits are assets and means tested. Centrelink will pay a maximum disability support pension of $873.90** per fortnight for singles and $658.70** (each) for couples.3 Depending on your current lifestyle, this may not be enough to cover your immediate needs.

It won’t happen to me Having an illness or getting injured is not something we like to think about, however, the harsh reality is that it can happen to anyone. Research shows that illnesses and injuries don’t just affect the elderly.

− Cardiovascular disease affects one in six Australians.4 − Every day, over 65 families are impacted by an event that seriously affects their ability to earn an income.5 − Stroke kills more women than breast cancer and more men than prostate cancer.6 − In 2013–14 about 531,800 people experienced a work related injury or illness—around 39% received no financial assistance.7

3 Department of Human Services. (2015). Payment rates for Disability Support Pension. Note: These rates are subject to change. 4 Heart Foundation. (2015). Information for professionals – Data and statistics. 5 Investment and Financial Association of Australia, and Lifewise. (2 March 2010). Media release: First-time ever figures. 6 National Stroke Foundation. (2015). Tools and resources: Facts and figures about stroke. 7 Australian Bureau of Statistics. (24 November 2014). Work Related injuries Australia (cat. no. 6324.0).

 

1. Your benefit amount will be assessable for tax
** Amounts as of 16/05/2016

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with Trudy-Ann King

Any advice provided by TIME Partners and TIME Insurance Solutions detailed above is provided independently of TIME Wealth Protection and our Licensee, Charter Financial Planning. Neither TIME Wealth Protection, nor Charter Financial Planning take any responsibility for any actions or service they provide.

"I'm deciding whether to save or invest..."

Financial Planning and SMSF
with Roy Mcleod

"I'm protecting my business assets..."

Business and Asset Protection
with Trudy-Ann King

Any advice provided by TIME Partners and TIME Insurance Solutions detailed above is provided independently of TIME Wealth Protection and our Licensee, Charter Financial Planning. Neither TIME Wealth Protection, nor Charter Financial Planning take any responsibility for any actions or service they provide.