Ok so with everything going on and uncertain market I thought I'll get income protection in case I loose my job etc.
Hence, I thought I'll take advice on which ones I should consider.
Thanks in advance.
Any Recommendation on Income Protection Please ?
dealover on 25/08/2021 - 16:35
Comments
^This.
/thread
Check first to see if your super account already has it or if it's an option. If you have multiple policies, it'll only pay out to a total max of 75% of your income. The premiums you have paid for anything over that just go to waste.
Having the cover in super could aid cashflow since the premiums will come from your super balance rather than your pocket.
IP insurance only covers your income if you're sick. Refer to this thread re redundancies.
Check first to see if your super account already has it or if it's an option.
Also your employer has it for their staff. May at least save you a little on the premium if you still want some additional cover (AFAIK you can't claim from multiple policies simultaneously).
AFAIK you can't claim from multiple policies simultaneously…
You can, but the total payments can't exceed 75% (plus super) of your income.
Better option is to spend the money on upskilling so you don't fear redundancy in the future.
https://www.aia.com.au/content/dam/au/en/docs/Adviser/techni…
there are differences between getting IP cover via super and outside super.
just keep that in mind.usually the ones outside super has better covers.
My super IP policies were pretty lightweight. Eg. only paying income replacement for up to 2 years, at a low percentage of my current salary.
Everyone is different, but my adviser recommended I pay for IP that would pay income replacement until I was 65, at a higher percentage of my salary, and keeps covering me until I'm capable of resuming the job I'm qualified for (rather than, say, a low paid job elsewhere). Costs a few grand a year, but it's tax deductible.
Have a read of this and talk to a financial adviser: https://www.barefootinvestor.com/insurance
There is a set of negative changes that will come in force at 1 October 2021. There is no choice in this because it is APRA mandated.
Among other things, the income % coverage will go down further to 70%
If you are considering it and want to go ahead with IP, do it soon.
https://www.insurancewatch.com.au/apra-changes-to-income-pro…
I’d be very keen to hear from anybody who has claimed on these policies.
What circumstances lead to the claim?
Was it paid out?
Would you do it again? What advice would you offer?let us know if you've heard from anybody on this
it is a pretty expensive policy to maintain, i can tell you thatAFRM do suggest of having it with cover to 65 years old (extending the cover in the super IP policy).
They only do insurances (risk management stuff), so I'd assume many ppl (that they manage) could claim IP, otherwise they wouldn't suggest it.. maybe..I made an income protection claim 2.5 years ago and my case was only closed in middle of last year. I was suddenly off work sick and had to undergo a major operation. Recovery took quite some time so they kept paying while I couldn't work.
If i had to point something out, I'd say that the important things to note is the waiting period and the fact that they pay in "arrears". My particular policy had a 90 day waiting period. Knowing I was going to be off for a while, I completed the relevant forms and gathered as much paperwork as I could and submitted it at around the 30 day mark (before I went in for the operation - I wasn't sure what state I'd be in after operation and for how long). The insurer did ask for more info afterwards and I provided that pretty much straightaway. From the initial lodgement date, it was about 90 days before I received approval from the insurer. The first payment came about a month after receiving the approval and that included a portion of "backpayment" to cover the period from the 90 day point to the first date of payment. From then on, payments were made automatically at the end of the month. They did check up on me every couple of months and also required forms to be completed by the treating doctor to ensure the payments continued. I was actually pretty impressed with how the claim went until the very end when I was getting ready to return to work. They tried to avoid the last payment of about $3K by picking and choosing the "vague wording" in my GP's certificate (over the more specific words in my specialist's report). That little incident left a sour taste in my mouth. I hate doing this, but I had to threaten to escalate it before they eventually backed down. The total payment was about $200,000 over the entire claim period.
If I was going to offer anyone any advice, it would be to take the shortest waiting period possible (the premiums are more expensive though). Even if you're eligible for a claim, you would still need to have access to enough money to survive for at least a few months while the waiting period (plus a month because "arrears") and time for the claims assessment passes and the regular payments start flowing through.
I have had a non-super Income Protection fund for many years as a backup just in case I ever got very sick.
I made a claim around 9+ years ago with a broken arm that resulted in a fixed-amount payout. Doctors filled in form, I took 1 phone call from insurance company & they direct deposited the money to my account.
5 years ago I developed an illness which got worse and worse and eventually resulted in a complete inability to work (total disability). Income protection insurance company required my GP to fill out paperwork & based upon that began to payout the claim once the 4 week waiting period was up. As things progressed month by month they wanted a specialists report & then also wanted me to get a second specialists opinion (at their cost). All reports are pretty clear that I can't work & so they've paid the claim monthly on time perfectly every month. Eventually I was diagnosed as totally and permanently disabled, so they should continue to pay me for the next ~20 years, but I still need to do paperwork with doctors every 6 months. They have been fantastic to deal with & have never made the claim process difficult.
Due to the TPD I also made a life insurance claim - that wasn't pleasant (different company), but it was a much more difficult process, they were much more skeptical (they probably get more fakers too) and took nearly a year to payout.
I couldn't be happier that I signed up for income protection when I was young and healthy. I would recommend it to everyone.
Hey mate. I researched this about a year ago and the only choice available that actually covered redundancy was Insuranceline.
I haven't made a claim yet but given Royal Commission and access to AFCA, I wouldn't imagine having an issue claiming.
most IP policies don't cover scenario of you loosing your job
https://moneysmart.gov.au/how-life-insurance-works/income-pr…
"Income protection insurance pays part of your lost income if you're unable to work because of a disability, caused by illness or injury."