Discussion in 'Legal Issues' started by redwing, 14th Jun, 2015.
Someone was recently telling me they had taken this out
I see some policies i.e. NRMA have
You are much better off putting the premiums and creating your own insurance.
These policies are quite expensive for 3 mths.
Also how much leave will you have and how many years service with an employer also counts. But if you get fired its another story..
I hear APRA are coming up with a policy of their own
Income protection insurance must be costed based upon a range of factors incl age, health issues, etc. Policy wording can be highly restrictive by using specific terms such as own occupation / any occupation. Premiums also affected by waiting period, level of cover (up to the legal limit!!), term of policy (3mths, 6mths, 12mths, age 65). Some end when a claim is made and others allow multiple claims. I have even seen self employed people consider such policies and been denied a claim. (ie not employed !)
I have a tax client who had IP policy and was diagnosed with MS. Her policy was to age 65 so she had income for 8 years.
Income policies can have add ons such as redundancy, trauma etc
Such policies can be of limited value in a super fund and premiums are deductible. Often such group policies are cheap but with some terms that restrict value. Access to super income policies can be a difficulty for younger workers unless disabled by the incident.
Personal financial advice is a must. Those aweful policies flogged on TV are really aweful and are often 3 month policies with a $5K limit a month etc.
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