Income Protection and Mortgage Repayment Insurance

Income Protection and Mortgage Repayment Insurance

One day you are holding down a great job, full of variety and responsibility. The next day you are admitted to hospital with a debilitating stroke.

Income Protection and Mortgage Repayment Insurance

While rehabilitation is helping you regain your ability to walk and talk, your rehabilitation period is something of an unknown quantity. Income protection cover, which provides monthly payments which are a percentage of lost income for those unable to work because of illness or injury, could well be your financial life line.

Frequently Asked Questions

  • What insurance premiums are tax deductible?
    As a rule, if the premium is tax deductible, then the benefit paid is tax assessable? There are some exceptions to the rule and full discussion is required on this topic – if in doubt, talk to a tax expert.
  • I am on a limited budget what should I insure?
    Your Income. There is not much you can achieve without income!! Check out the Income Protection Calculator under the forms tab.
    Life Insurance. If you have dependants you should ensure that they are not financially disadvantaged should you die prematurely. Your life insurance should at least clear all debt, including personal guarantees (personal guarantees do not die with you) and provide on going income for a number of years into the future. (Ideally until your children are self supporting) Work your way through the Life Insurance Calculator under the forms tab.
  • I do not need policies that pay for lost income – I won’t get sick and I can rely on ACC?
    Wrong – according to Fidelity Life, 52% of income protection claims were for illness and 48% were for accident. But hang on, we have ACC so how does that work?? Call us.
 
 


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