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| INCOME PROTECTION |
Along with your health, your ability to
earn an income is probably the most important asset you have right now.
What would you do if a serious illness or accident stopped you from working
for the next couple of years - or longer? How long would you last if you
were unable to work, and who would this affect?
If you don't know how you'd cope if you were suddenly too sick or injured
to work – you need income protection. Talk to an Apex adviser today
by clicking here.
Income protection replaces your income if you're unable to work due to sickness
or injury.
If you're like most people you probably need your income for lots of things:
living expenses, servicing debts, looking after your family and making plans.
Have a think about these questions.
- How dependent on your income are you?
- Do you have sources of income other than your job?
- Who would support you?
- What would be the financial impact of this?
- Is anyone else dependent on your income?
How long to wait?
Your income protection payments won't start until after your waiting period
(also called a no pay period). You can choose the waiting period (though
there is often a minimum of a couple of weeks or a month). A plan with a
waiting period of 1 month will have much higher premiums than a plan with
a waiting period of 6 months.
How long would your savings last if you were unable to work? Do you have
sick leave owing?
If you have an emergency fund that can keep you going for a few months you
might be able to extend your waiting period - lowering your premium. Apex
can guide you towards making the right choices.
What length of cover?
You will usually have a choice of how long your benefits are to be paid
for (you'll often see a choice of 2 years, 5 years, or till age 60 or 65).
Simply put, if you choose a pay period of 2 years, and need to use your
income protection, you will receive payments for 2 years. After that the
payments will stop - regardless of whether you're able to work or not. If
you selected the "until 65" pay period, your payments would continue
(as long as you're disabled of course) until you're 65.
Which plan to choose?
Choosing the right income protection plan can be complicated. For example
if you're self-employed with a fluctuating income the type of plan that
suits you will probably be really different from the plan that suits an
employed person with a steady income.
Apex ensures you understand what your plan does and doesn't do. Different
policies have different definitions (or policy wordings). Apex ensure you
get the right policy for your circumstances.
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