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christabelle
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income protection insurance

Wed Nov 11, 2009 4:45 pm

Hi ladies,

I was wondering if anyone has income protection insurance? I have received a quote from a broker however I have no idea if the quote is reasonable or not. A girl I work with has income protection but it's through her super and she's unsure of how much it costs. If you don't mind sharing, I was wanting to get an idea of how much premium you pay per month for what minimum income per month. eg I was quoted approx $65 per month to be insured for $4800 per month (I'm pretty sure that's the gross monthly amount) with a 2 month waiting period. Any feedback would be appreciated as I'm finding it a bit difficult to obtain quotes as I don't want to leave my details with too many brokers otherwise they keep hassling me! Thanks in advance.
 
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christabelle
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Re: income protection insurance

Wed Nov 11, 2009 8:25 pm

great thanks I will look into what my super offers.

Mrs Ko - That's handy that your work pays for your income protection!
 
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kaylajade
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Re: income protection insurance

Tue Nov 24, 2009 3:41 am

Hey

I actually specialise in this area (not broker)

Be careful only having it through your superannuation, as mentioned above, most superannuation funds only offer it for a 2 year benefit period. If you get sick or injured and cant work ever again, ur only gunna get paid for 2 years, and if you end up being injuried outside of work, there is no workers comp. Can get a bit scary.

PM me if u wanna chat
 
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kristen_86
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Re: income protection insurance

Tue Nov 24, 2009 7:17 pm

My Dh has it, I think it is around $70ish a month but it is for his full salary. It covers accident, unemployment, sickness and death. Very important, especially if you own your own home.
 
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christabelle
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Re: income protection insurance

Wed Nov 25, 2009 10:17 am

kaylajade wrote:
Hey

I actually specialise in this area (not broker)

Be careful only having it through your superannuation, as mentioned above, most superannuation funds only offer it for a 2 year benefit period. If you get sick or injured and cant work ever again, ur only gunna get paid for 2 years, and if you end up being injuried outside of work, there is no workers comp. Can get a bit scary.

PM me if u wanna chat


I deal every day with worker's compensation claims so unless you're "fortunate" enough to have a work injury, you're pretty screwed re compensation benefits and even once your statutory entitlement ceases, you may not receive an income if you don't have income/disability insurance (unless you put in a damages claim etc).
 
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christabelle
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Re: income protection insurance

Wed Nov 25, 2009 10:19 am

kristen_86 wrote:
Very important, especially if you own your own home.


I agree! Apparently you're supposed to have at least 8 months worth of savings......I realised I am screwed if I run out of sick leave.
 
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The_Future_Mrs_J
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Re: income protection insurance

Tue Dec 01, 2009 3:12 pm

We have life insurance and income protection. It is SO SO important and you definitely can't just rely on your super. I work in finance (lending) and see some really sad situationss everyday which could have been made a lot easier for those involved if they had protected themselves properly :( Mine costs $65 a month and DH is $75 covered for a payout of $400k payout upon death and 75% of our income with a 4 week waiting period. You can get a 2 week waiting period but it costs a lot more. Also, there are two payment "types". One that may be cheaper to begin with but will increase every year OR one that's a bit more to start with but it stays the same/similar for the life of the policy which is a much better option in the long term if you start insuring yourselves young.

Another option is Loan repayment insurance. It can sometimes be cheaper but it will ONLY protect your loan (mtg or personal) and you can generally protect yourself in the event of death, disability and unemployment (or a combination). This can sometimess be a viable option if your biggest concern is how you would cover your mortgage.

It's all about protecting your assets/lifestyle in the event that you were unable to work
 
tarwon
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Re: income protection insurance

Wed Aug 24, 2011 6:18 pm

We don't have it - but we have over a year's worth of wages saved up that would help us pay the mortgage if something happened
 
Scarlett
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Re: income protection insurance

Wed Aug 24, 2011 8:37 pm

Re the comments re super income protection only being available for 2 years - wouldn't most insurances (whether through super or otherwise) be limited to a certain time?? Does anyone have a non-super income protection policy? If it were for the rest of your life, I would imagine it would cost an absolute motza! I figured you get it for 2 years (or whatever time period), then don't they normally make a lump sum payment to "get you off the books" so to speak....
 
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christabelle
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Re: income protection insurance

Wed Aug 24, 2011 10:46 pm

I can't believe I started that thread nearly 2 years ago. I'm more knowledgeable now!

You can cover yourself until age 65 with a waiting period. If your super automatically includes 2 years of income protection then you could nominate a 2 year waiting period. Your premium for this wont be very much. You can pay premiums out of your net pay or from your super. If you pay out of your actual money it's tax deductible. My broker recommends that people pay it then claim the deduction if they can afford it but worst case scenario pay from super so at least you have insurance

Or if your super doesnt include 2 year ip insurance, take out a policy until age 65. If you have a few months worth of savings then make the waiting period longer which will reduce your premium.
 
anaestmia
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Re: income protection insurance

Tue Feb 14, 2012 3:55 pm

I sound so derro here, but if I cannot work for some reason, centrelink payments are more than enough to cover my expenses. I already get rent assistance and a disability supplement, so don't see an issue.
 
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Re: income protection insurance

Tue Oct 02, 2012 2:02 am

Agape wrote:
we put an amount (that we calculated from quotes for each) in a high interest account, we are very strict that this account is ONLY for dire medical issues and to date have never needed to touch it.


That's really smart! I don't think I have come across this one before, honestly! So you would expect to see a massive lump sum amount by the time retire from your work life.
 
seaweed
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Re: income protection insurance

Tue Oct 02, 2012 2:09 am

This is something that I think that we will have to look at, once the renos are finished. I didn't know that this topic was on here. It's been very interesting reading.
 
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StephMT
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Re: income protection insurance

Tue Oct 02, 2012 9:17 pm

anaestmia wrote:
I sound so derro here, but if I cannot work for some reason, centrelink payments are more than enough to cover my expenses. I already get rent assistance and a disability supplement, so don't see an issue.

It might cover your expenses now but if you couldn't work for medical reasons, how will you cover additional expenses such as therapy, physio and meds
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