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Your income is your biggest asset. Add up what you will earn over the next 20 to 30 years and you will realise how important your income is. Then think to yourself what your lifestyle would be like if you couldn’t for an extended period or ever again, how would you cope financially?
Following is a table with some approximate monthly premiums based on differing occupations, sex, age and monthly benefits but first I want to explain some of the key parts of an income protection policy. Monthly Benefit: You can insure your income for up to 75% of your gross annual income. Based on $80000 this would be $60000pa or $5000pm month. Monthly Premium: This is a personal tax-deductible expense Waiting Period: This is a claim free period and you normally have an option of 30 or 90 days. You need to be off work throughout the waiting period before you can claim. Benefit Period: This is how long they will pay for any one claim and you have options of 2 and 5 years or to age 65. Always need to take to age 65 if you can as if you are off work for 2 or 5 years you probably won’t be going back. Table based on non-smoker with a 90-day waiting period and benefit to age 65.
** Using this example a 30yo professional male will pay just $43pm premium for an $8000pm benefit payable to age 65 after a waiting period of 90 days. Potential is payment of $8000pm ( $96000pa) indexed annually with CPI for 35 years, add that up!! All for $43pm, which is tax deductible. These rates could vary slightly and are subject to underwriting so please use as a guide only and contact me if you would like an exact quote based on your personal situation. |
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