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.