Income Protection allows you to cover your expenses and maintain your lifestyle if you are unable to work for several months, a year or longer.
Premiums are tax deductible.
According to recent studies, 83% of Australians have car insurance1 , but only 31% have income protection2. What is more important, your ability to drive or your ability to generate an income?
We all know how important a regular income is in maintaining our lifestyle and of those close to us. What really are the chances of having that taken away from us?
What are the Chances?
|A car being stolen and not recovered?
|1 in 9093
|Having to claim on a home &/or contents policy?
|1 in 134
|Becoming disabled for more than 3 months before age 65 and having no income?
|1 in 35
|Suffering from cancer before the age of 75?
|1 in 3 for men,
1 in 4 for women6
Most people would not think twice about insuring their home and car. However, many have not even considered protecting their most important asset, themselves.
1 AAMI Fact Sheet, Shopping for Car Insurance, September 2008
2 TNS/IFSA Investigating Income Protection Insurance in Australia July 2006
3 Statistics from the National Motor Vehicle Theft Reduction Council – 12 months to June 2010.
4 Insurance Statistics Australia June 2010.
5 Calculations based on data of individual disability income insurance sold by Australian life offices, Institute of Actuaries of Australia 2002. Report of the Disability Committee. IA Aust: Sydney.
6 Cancer Institute NSW ‘The Cancer in NSW Incident and Mortality Report’ 2007.
7 This figure is based on a 25 year claim, adjusted for inflation at 3% each year.
Elaine is a 53-year-old high-flying executive earning $370,000 per year. She is single and has no children. Three years ago, Elaine started her own consultancy business. She has her own home valued at $1.5m with a mortgage of $750k. She also has a share portfolio valued $200,000, with a margin lending debt of $80,000.
Elaine goes for her scheduled mammogram and is diagnosed with early stage breast cancer. She is unable to work whilst she is having chemotherapy, with the chemotherapy to continue for a period of 6 months.
Elaine is one of the lucky ones. She was diagnosed early and by having income protection insurance in place, she:
- received monthly benefits of up to 75% of her usual salary, which enabled her to keep up with the interest payments on her debts;
- was covered for some of her mother’s travel and accommodation expenses, given her mother had travelled from overseas to be with Elaine during her treatment; and
- was able to focus on her treatment and recovery, whilst not having to worry about a loss of income during her recuperation.
The Financial Services and Credit Guide contains information that will help you decide whether to use the financial services we offer.
Austbrokers Countrywide Life Pty Ltd
Corporate Authorised Representative Charter Financial Planning Ltd Australian Financial Services License No. 234665 ABN 28 152 479 162
FINANCIAL SERVICES AND CREDIT GUIDE
Issued: 1 June 2023
Austbrokers Countrywide Life Pty Ltd ABN 28 152 479 162 is a Corporate Authorised Representative of Charter Financial Planning Limited ABN 35 002 976 294 Australian Financial Services Licensee Licence number 234665.
Principal Address: Quay Quarter Tower, 50 Bridge Street Sydney NSW 2000
This website contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.
The Authorised Representative provides you with advisory services in accordance with the disclosures in the Financial Services and Credit Guide. Charter Financial Planning is responsible to you for all conduct. www.charter.com.au
Information provided on this website is general in nature and does not constitute financial advice. Austbrokers Countrywide Life Pty Ltd will endeavour to update the website as needed. However information can change without notice and Austbrokers Countrywide Life Pty Ltd does not guarantee the accuracy of information on the website, including information provided by third parties, at any particular time.
Every effort has been made to ensure that the information provided is accurate. Individuals must not rely on this information to make a financial or investment decision. Before making any decision, we recommend you consult a financial planner to take into account your particular investment objectives, financial situation and individual needs. Austbrokers Countrywide Life Pty Ltd does not give any warranty as to the accuracy, reliability or completeness of information which is contained in this website. Except insofar as any liability under statute cannot be excluded. Austbrokers Countrywide Life Pty Ltd, its employees and authorised representatives do not accept any liability for any error or omission on this website or for any resulting loss or damage suffered by the recipient or any other person.