Insurance: Disability Income
Inability to work may be your largest risk!Disability income is a monthly payment when you are unable to work due to illness or injury
For most people their ability to work is their most valuable asset.
The potential loss of income if you are unable to work is usually in the hundreds of thousands of dollars and often in the millions.
Disability income provides protection on a long-term basis, usually up to age 65, for up to 75% of your income from your usual occupation.
Flexibility to keep premiums low – waiting period
Because it is a long-term benefit there is a waiting period between the time of being unable to work and when the claim starts.
The longer the waiting period the lower the premiums.
Usually 4 weeks is the shortest, with differing periods up to 12 months.
Premiums are tax deductible
Premiums are usually tax deductible. Any benefits will be paid to you gross but are assessable for income tax.
Inflation
The sum insured and benefits are linked to the Consumer Price Index to maintain purchasing power.
Non-Cancellable
Once issued the policy cannot be cancelled by the Insurance Company, regardless of the state of your health or how often you may have claimed.
The premium basis must also stay the same.
