Income Protection Insurance

From: Danny Dwyer


I would like to know a bit more about Income Protection Insurance for the debts on IP's.

Do any of the forum members have Income Protection Insurance for loans from IP's?

Which insurance company gives the best cover etc? I understand that most of them cover you up to 75% of loss in income and I assume that if & when you die, all the debts on the IP's that you have, will be all paid out. Is this correct?

I am aware that it is a taxable deduction.
 
Last edited by a moderator:
Reply: 1
From: Dale Gatherum-Goss


Hi Danny!

I have income protection insurance to cover all of my income streams.

I believe that we should all have such insurance if we have debts and a family and strongly urge everyone to organise it.

Dale
 
Last edited by a moderator:
Reply: 1.1
From: Manny B


Howdy there,

I am also in the process of looking for Income Protection Insurance as well, any information would also appreciated... ie. any particular supplier & what to look out for...

Cheers,

Manny.
 
Last edited by a moderator:
Reply: 1.1.1
From: Dale Gatherum-Goss


Hi!

I would talk to an insurance broker as they should be able to shop around for the best insurance at the best price.

The price will be determined by the risks involved, the amount of income you wish to insure, your occupation, your health and various matters way beyond me.

I hope that this helps

Dale
 
Last edited by a moderator:
Reply: 1.1.1.1
From: Michael G


Hehe,

I know companies offer income insurance to cover your salary.

I wonder if there's passive-income insurance?

Michael G :)
 
Last edited by a moderator:
Reply: 1.1.1.1.1
From: Robert Forward


Just on the subject about Income Protection Insurance. I have mine as a part of my work superannuation. My work Super is through AMP and it's an extra service they provide.

From memory it costs $25-30 per month, which is paid BEFORE TAX and is also greatly cheaper then having a separate Income Protection Insurance policy.

And on top of all that the costs for it comes out of my employers contributions into my superannuation. Not a cent out of my pocket.

Anyway, it's something to look into.

Cheers
Robert

The Sydney "Freestylers" Group Leader.
 
Last edited by a moderator:
W

WebBoard

Guest
Reply: 1.1.1.1.1.1
From: G V


Hi,

Please correct me if i am wrong. insurance through super is a one off payment where as income protection insurance is a monthly payment till you are alive(should something happen to you and you are not able to derive income from the type of job you were doing before). cost of income protection insurance is of the order of $170 per month for approx $6000 per month return . of course a lot depends on your health condition and age. also the premium tends to increase as you grow old.
 
Last edited by a moderator:
Reply: 1.1.1.1.1.1.1
From: Robert Forward


Usually it is GV

But with my Superannuation I do also have the option of taking out "Income Protection Insurance" as a part of my Super. I do also retain the once off payment for permanent/partial disability as well. And this I can also increase my level of insurance.

As in, I haven't taken out any personal insurances because I can up my Superannuation Insurance and Income Insurance to cover myself. Which makes this really tax effective and CHEAP as it's all done with my employers contributions to my Super.

I hope this helps somewhat.

Cheers
Robert

The Sydney "Freestylers" Group Leader.
 
Last edited by a moderator:
W

WebBoard

Guest
Reply: 1.1.1.1.1.1.1.1
From: G V


Hi Dale,

If i get the income from AMP(not the premium) from income protection insurance is it taken as taxable income?
 
Last edited by a moderator:
Reply: 1.1.1.1.1.1.1.1.1
From: Steve Navra


I use an excellent broker in Sydney, feel free to e-mail me and I will pass on the details.

Regards,

Steve
 
Last edited by a moderator:
Reply: 1.1.1.1.1.1.1.1.2
From: Dale Gatherum-Goss


On 2/19/02 2:20:00 PM, G V wrote:
>Hi Dale,
>
>If i get the income from
>AMP(not the premium) from
>income protection insurance is
>it taken as taxable income?

Hi!

Yes, it is, I am afraid.

Sorry

Dale
 
Last edited by a moderator:
Reply: 1.1.1.1.1.1.1.1.2.1
From: Michele B


Make sure you nominate your actual income and not your 'paper' income, esp when self employed with several entities. Not nice to receive only 75% of say $20K instead of your real much higher income.

michele
 
Last edited by a moderator:
W

WebBoard

Guest
Reply: 1.1.1.1.1.1.1.1.2.1.1
From: Paul Lytwyn


Hi,
One website worth checking is www.insurancewatch.com.au
I have not used their services yet but it appears to be a good starting point.
Cheers Paul
 
Last edited by a moderator:
Reply: 1.1.1.1.1.1.1.1.2.1.1.1
From: Alan Hill


Paul,

I'd agree. I got some good quotations there myself the other day.



:)
 
Last edited by a moderator:
W

WebBoard

Guest
Reply: 1.1.1.1.1.1.1.1.2.1.1.1.1
From: Dirk Diggler


Is Income insurance a waste of money if your passive income from Real Estate exceeds your expenses. I'm in this position now and the advice I'm getting (including my accountant) is ditch it because its a waste of money.
What are other peoples thoughts?
 
Last edited by a moderator:
Reply: 1.1.1.1.1.1.1.1.2.1.1.1.1.1
From: Robert Forward


My opinion is only for myself as I don't actually pay for Income Protection out of my own $$$'s. (See previous posts about that)

I will keep mine as it's always a good base for the reason of "Incase something happens". Though once out of the rat race I won't bother about it. Mainly due to the expense not being worth the returns.

Cheers
Robert

The Sydney "Freestylers" Group Leader.
 
Last edited by a moderator:
Reply: 1.1.1.1.1.1.1.1.2.1.1.1.1.2
From: Michele B


Dirk
Any insurance is a waste of money unless to replace an essential income stream or valuable asset.

michele
 
Last edited by a moderator:
Reply: 1.1.1.1.1.1.1.1.2.1.1.1.1.2.1
From: Splinter Wood


Hi Danny,

Income protection is a very good idea for anyone who can not survive without an income till you reach retirement.

Do you insure your car ? What do you pay ? What's it worth ?

Message being your income is worth millions over you working life. The cost will be similar to what you pay for car insurance.

When you choose, you will generally get the option to be paid a benefit for X years i.e. 5,10.15 or till your 65. I recommend take the maximum (60 or 65)

You are generally paid 75% of your earned income at the time of claim, which is taken as an average over the last 5 years of income stream or the highest among the last 5 years.

You will also be able to select ICB (Increasing Claims Benefit) where your benefit is indexed to inflation. Take that too.

You may further select the main monthly benefit plus a death benefit (Can be a cheap way to buy life insurance) and also TPD (Total & Permanent Disability) which is what our friends earlier in this thread were confused about re the Company sponsored AMP Policy.

TPD is general is once off payment if you are deem totally and permanently disabled.

A good broker should advise the better Co. to run with.

Another critical point - make sure you get a NON-CANCELLABLE POLICY.

The cost is all tax deductible.

Don't do this for your IP, do it for yourself and your family !

Regds
Splinter
 
Last edited by a moderator:
Reply: 1.1.1.1.1.1.1.1.2.1.1.1.1.2.1.1
From: Robert Forward


Hi Splinter

I'm not sure if I read your post correctly or not about the AMP Sponsored benefits. I'll add my post just to clear things up about it again.

Yes you are correct I would still receive the TPD (Total & Permanent Disability) built into my Super, but I have also taken the option to receive the income protection insurance too.

To me the best things about compulsory Superannuation is that you can get very cheap insurances attached to them. I'm not overly fussed about the actually $$$'s in the account, but the insurance cover that I receive is about 30-40% of normal price.

Cheers
Robert

The Sydney "Freestylers" Group Leader.
 
Last edited by a moderator:
Reply: 1.1.1.1.1.1.1.1.2.1.1.1.1.2.1.1.1
From: Splinter Wood


Hi Robert,

Points clear. I think the confusion was more with GV and people not distinguishing between 'Benefit' and 'Premium' in the thread. You can pay yearly, quarterly, monthly etc Premium. You can be paid a monthly Benefit of Lump Sum Benefit or a combination of the two depending on your policy. Some of them also have other bells and whistles like 'Spouse benefit', house modification benefit' ie to install wheel chair ramps etc and the list goes on.

RE AMP, I reviewed one of their Income Protection/TPD policies many years back and found a lot of holes in it. It was Co. sponsored deal like yours.

Often the group policies are not so good when you read the fine print. Don't assume ALL AMP policies are the same as your company would have had a deal made to suit their need and more likely their budget.

Bottom line, I would advise you go through the policy doc (lots of small print) and evaluate OR have an expert do it as you would be amazed how easy it can be for insurance co.s to get out of paying.

Regards

Splinter
 
Last edited by a moderator:
Top