Personal Insurance

Protecting You, Your Family & Your Income

Creating a specific plan to protect you and your family is paramount to your peace of mind, so you can get on with enjoying life.

Dealing with personal financial risk shouldn’t be hit and miss. Have you thought what would happen to your family if you were no longer able to provide for them?

There are various options for providing a safety net if sudden illness, injury or a premature death strikes you or your family, but how effective or reliable will they be?

A personal contingency plan may include a combination of life, disability, income protection and trauma insurance. We can assist you to target and eliminate personal financial risk by helping you create a contingency plan tailored to you and your families needs.

Let the team at Step Up Financial Solutions help you answer questions surrounding income protection insurance such as:

  • how does income protection work?
  • what is an income protection waiting period?
  • how long does income protection last?
  • are income protection payments taxable?
  • does income protection insurance have GST?
  • what is the best income protection insurance for self employed?
  • is there income protection for casual workers?
Talk to us today

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Is income protection insurance worth it?

In the minds of many people, premature death would cause the greatest possible degree of financial impact to a family due to loss of income and the ongoing need to cover the living expenses for the surviving family. But it is possible that an even greater loss could occur if total and permanent disability strikes! A comprehensive financial plan will involve a range of strategies that specifically deal with unexpected life events that threaten your financial security. A financial adviser can help you put together a plan that suits you using their knowledge, skills and resources to properly assess and identify the risk exposure in your situation.

More questions to ask when thinking about protecting your income and your family:

What does life insurance cover?

Life Insurance provides peace of mind that a lump sum of money is available in the event of the death of the person insured.

Term Life Insurance will provide a lump sum to the beneficiary or policy owner in the event of the death of the life insured or if the life insured is diagnosed with a
terminal illness and is not expected to survive usually for more than 12 to 24 months.

Life insurance is important for the following reasons:

  • It is important your dependents are not exposed to financial risk in the unfortunate event of your death as this could put them under undue financial and emotional pressure as they struggle to meet daily commitments or debts.
  • Term life insurance pays the insured lump sum in the event of your death, or in some cases, upon diagnosis of a terminal illness of the life insured.

It can be used to:

  • Fund funeral expenses
  • Legal and accounting fees associated with the wind up of an estate
  • Eliminate outstanding debt
  • Provide a capital sum to provide income into the future
  • Fund future education expenses.
What level of insurance cover does your family need?

Whole of Life Insurance:

  • Provide peace of mind that a lump sum of money is available in the event of the death of the person insured;
  • Policy has a cash value if redeemed rather than claimed upon.

Personal insurance helps keep your financial plan on track against life’s mishaps.

Insurance can provide a cost-effective method of providing personal wealth protection and can help you protect your family and yourself if you die prematurely or suffer illness, medical crisis or injury. It can ensure that any lump sum capital needs are catered for and ongoing income
requirements are covered. Most people insure their homes and cars but not themselves and the income they earn.

There are several types of insurance:

  • Term Life Insurance
  • Total and Permanent Disability Insurance (TPD)
  • Income Protection or Salary Continuance Insurance
  • Accidental Insurance Cover
  • Child Cover Insurance

Talk to us today to see how we can provide you with peace of mind to protect you and your loved ones. 1300 88 28 48

How do I protect my income?

Income Protection Insurance (Also known as Salary Continuance). In the event the insured person is unable to work due to illness or injury, Income Protection Insurance can deliver continuity of up to 75% of income in the event that the insured person cannot work.

Income Protection Insurance will provide up to 75% of your income as a monthly benefit, after a specified waiting period, when sickness or injury prevent you from working.

Income protection insurance benefits can be used to meet your ongoing living expenses whilst unable to work.

Income protection insurance is important for the following reasons:

  • It is important you are not exposed to financial risk through accident or misfortune as this could jeopardise your present and future plans as detailed in your goals and objectives.
  • Salary continuance or income protection insurance gives you a regular income while you are totally disabled and unable to work due to illness or injury.
  • The policy will provide you with a monthly payment, indexed by inflation, until you are able to return to work or your benefit period expires, whichever applies first. This lessens the need to draw on other sources such as investments, home equity or social security.
  • Premiums paid for income protection insurance are tax deductible and will reduce the income tax liability of the policy owner.

Income protection premiums held outside of superannuation are generally tax deductible to the individual. Holding your income protection policy outside of superannuation allows you to obtain a more comprehensive range of benefits.

Income protection is sold on an Indemnity basis. With an ‘indemnity’ policy you are insured for what you say you earn, but if you make a claim you have to verify your income. If your income has reduced since you applied for cover, your claim will be paid on the reduced amount.

What are the benefits of income protection?
There are numerous benefits to income protection. We’ve listed our top 8 reasons to secure your future with income protection:

Our top 8 reasons for income protection insurance:

  1. If you have income protection insurance you are ensuring your income continues even if you’re unable to work;
  2. You can focus on your recovery and reduce your financial stress, knowing your income is protected;
  3. Income protection insurance is customisable meaning we can help you get the right cover for your needs;
  4. If you have a mortgage, income protection ensures you have the means to keep fulfilling those payments;
  5. You can stay on top of any debt and bills, knowing that financial assistance is organised through your income protection insurance.
  6. You may be able to care for a sick child. Child Cover Insurance will provide a lump sum to the beneficiary or policy owner in the event of the insured child suffering a specified medical condition as defined
    in the PDS or death, or if the child is diagnosed with a terminal illness and is not expected to survive for more than 12 months.
  7. You can rest easy knowing that you won’t have to change your lifestyle due to financial stress if you are sick or injured. Income protection helps ease that burden.
  8. Income protection can be one of the best ways to help you and your family return to normal sooner. It allows you reassurance that with the proper policy in place, your financial situation is in a safe place.

Contact Step Up Financial Solutions today to chat about you and your families financial protection.