Need a Mortgage Broker for Income Protection Insurance?
As the name suggests, income protection is a payment that replaces your income in the event that you are unable to work for an extended period of time. It pays up to 75% of your average annual income monthly and is designed to cover your living expenses if you cannot work due to sickness or injury.
Income Protection has waiting and benefit periods. The waiting period refers to the number of days before the commencement of income protection cover benefits, normally 14, 30, 90 days or possibly 2, 3 or 5 years after the claim is lodged. If you have sufficient savings to last one or two years, you may choose to have the cover that only starts after, say, the first two years, bearing in mind the longer the waiting period, the cheaper the premiums.
Please call First Choice Mortgage Brokers to discuss your Income Protection Insurance opportunities and for any assistance in accessing the Income Protection Insurance application process. If you require expert financial advice in Sydney, our finance brokers cut through the confusion by offering free mortgage brokering consultations to make your financial objectives feasible.
Why Take Out Income Protection Insurance?
Imagine trying to pay your mortgage or other debts if you were off work for an extended period of time due to sickness or injury. The bottom line is you simply couldn’t.
You can’t rely on sick leave as this normally only last a few weeks at best, so how would you pay for the simple things in life such as food, bills, school fees etc.
Income protection gives you the peace of mind, that should anything happen, and you can’t work for a period of time, at least you can focus on your recovery, knowing that your bills and mortgage repayments will be taken care of.
Income Protection Insurance FAQs
What Does Income Protection Insurance Cover?
Income protection insurance protects a policyholder if they cannot perform their previous work level due to an accident, incident, or disability. Typically, the coverage refers to a temporary mental or physical illness, in addition, to any other situation in which someone is supposed to be able to return to work in some capacity.
What Does Income Protection Insurance NOT Cover?
There may be certain policy exclusions that you should be aware of before purchasing income protection. It’s a smart idea to read the product disclosure statement (PDS) closely and other compliance documentation to ensure you understand what is and isn’t protected by a policy. For example, some policies may not cover you if you choose to take a redundancy package, resign from your job or sell your business.
Does Income Protection Insurance Cover Redundancy?
Some insurers offer compensation if you are forced to resign due to mandatory redundancy. Since not every insurer offers this service, it’s important that you closely read the terms and conditions to understand what is and what is not covered before purchasing a policy. Some policies have additional requirements regarding covering redundancy, such as you cannot have volunteered for a redundancy scheme or cannot have been fired for misconduct.
Can I Make a Claim for the Same Sickness/Injury That I Have Had Before?
If you suffer from the same or a similar illness or disability that you previously applied for within six months of the last benefit payout, depending on your provider, they may or may not resume benefit payments without imposing a new waiting period. If you have made a complete recovery and there have been more than six months between claims, then you will file a new claim, and the payout period will begin again.
Speak to a Mortgage Broker
You can make an appointment with a First Choice Mortgage Broker consultants by calling 1800 111 455.