Follow along with the video below to see how to install our site as a web app on your home screen.
Note: This feature may not be available in some browsers.
Does anyone else have dramas re IPI ddue to perceived risky occupations?
yes - It's Crazy. My Son Doesn't Qualify. He's A Commercial Pilot. How Many Qantas, Jetstar, Virgin Blue Pilots Have Died Through Air Crashes In The Last Few Decades?
Actually Not A Single Guy In My Large Family Qualify For Ipi.
They Are All As Fit As Fiddles, And In The Meantime Obese Desk Jockeys Who Pig Out On Fast Food And Never Excercise Can Get It Ipi With The Snap Of A Signature.
Jase,
I often do 6 or 12 month waiting periods. I am not sure what happened in your case?
Yes - it's crazy. My son doesn't qualify. He's a commercial pilot. How many Qantas, Jetstar, Virgin Blue pilots have died through air crashes in the last few decades?
Actually not a single guy in my large family qualify for IPI.
They are all as fit as fiddles, and in the meantime obese desk jockeys who pig out on fast food and never excercise can get it IPI with the snap of a signature.
I've got IPI within super.
60% of income (10% super) up to 65, 90 days waiting period
I'm paying about $21/month in premiums.
and if you require ongoing after 2 years ?
ta
rolf
can you clarify? is this separate to benefit payment period to age 65?
most super based insurance has a max claim period of 2 years.
All the pints above are valid and interesting. The key thing to ask would be “if you were sick and couldn’t earn an income, how are you going to pay for commitments such as living expenses, mortgages, children’s education expenses and so on?” Rental and investment income might pay for some of this. Loan buffers, cash, liquid investments, sick leave, net worth and so on also mitigate this risk. However, there’s a possibility that you could fall ill and never be able to work again. However, you might not meet the definition of ‘permanently disabled’ so you might not be able to claim on TPD insurance. You might not want to sell investments because this will impact on your ability to afford retirement. Therefore, what are you going to do?
IP is one (often very good) solution. The key things to remember is a longer waiting period reduces cost (therefore, if you have heaps of sick leave and cash savings you might be comfortable with a 2 year waiting period for example). Also, you probably don’t need IP forever. There will (hopefully) be a time where you’ll have a strong asset base that will see you through this risk.
Some IP policies have the option of covering involuntary unemployment (losing your job).
Income protection insurance or for that matter any insurance should be dictated where in your life you are. Obviously, if one is young with family and has large loan commitments, is the main breadwinner, has young children, than income protection would be worthwhile having, so early in the accumulation phase in wealth building journey.
However, once one is approaching 60, it really depends upon your net worth not just having large loans, right? Then one has so many choices, such as to draw equity, or the portfolio is maintaining itself, or buffers of some cash reserves are in place, or other investments, or could downsize paid PPOR, the kids are older so no school fees, closer to SMSF so could use TTR strategy, etc....
Basically, I really dislike how the insurances are thrown out there in a basket category that ALL those insurances are required for everyone. I have found out that personal circumstances should dictate what insurances one should take out!
Has anyone dealt with AIA? How has the experience been?
Yes - it's crazy. My son doesn't qualify. He's a commercial pilot. How many Qantas, Jetstar, Virgin Blue pilots have died through air crashes in the last few decades?
Actually not a single guy in my large family qualify for IPI.
They are all as fit as fiddles, and in the meantime obese desk jockeys who pig out on fast food and never excercise can get it IPI with the snap of a signature.