Wealth Protection
income_protection

Income Protection

How will I pay my bills if I can’t work?

What would happen if your weekly, fortnightly, or monthly income was suddenly interrupted for a few months (or years)?   Could you meet your next mortgage payment, pay the school fees, car leases, business expenses, or just meet the normal costs of day to day living for an extended period?

Ensuring the unexpected onset of a short-term illness or an accident doesn’t result in the collapse of your ‘financial world’ is a basic foundation of every well developed financial plan. Banksia Partners can advise you on the appropriate levels of income protection or salary continuance insurance protection you will need for your particular situation.

Banksia Partners is not aligned to any specific insurance company, so we can select from the best Income Protection & Salary Continuance insurance products available based on policy conditions and pricing. Call us to discuss what needs to be done to limit you and your family’s financial risk.

The purpose of Income Protection insurance is to provide a monthly benefit of up to 75% of your normal monthly salary or wage. The objective is to ‘pay you’ until such time as you are able to once again return to work and begin generating income to pay the mortgage, put food on the table and ‘carry on’ financially.

As with the cost other types of life insurance policies, the annual insurance costs (or ‘premiums’) you pay will be determined by your age, gender, smoking status, the level of cover and options selected, together with specifics of your occupation and income. You may also be further medically assessed if you have pre-existing medical conditions or make lifestyle choices that increase the risk of claiming. Benefits can be paid for a fixed period (say, 2 years), or up until retirement age at 65.

Income protection insurance premiums are tax deductible because they are directly linked to deriving tax assessable income. On the downside, in the unfortunate event you have to make a claim, the monthly benefit you receive is taxable as with normal salary and wages.

Income Protection (or salary Continuance) can also be established under superannuation.

To obtain more information on Income Protection or Salary Continuance insurance speak to a Banksia Partners adviser who can advise you after taking into consideration your objectives, financial situation, and needs.