Do I Need Income Protection Insurance?
If you or your loved ones would suffer if you could not work, then you should seriously consider income protection insurance. Unless you have some form of reliable ‘passive income’, income protection insurance is a critical component of a personal financial plan.
How Do I Arrange It?
The best way to take out income protection insurance is to see a financial adviser. The adviser can help you calculate the amount of insurance you need, and guide you through decisions such as the appropriate benefit period and the waiting period. The adviser will also help you choose a reputable insurer with a good record of paying claims when they are made.
The waiting period is the time that you need to be unable to work before the insurer starts making payments.
You can often choose your preferred waiting period. Some people choose a very short waiting period of as little as 14 days. Others are confident that they could cope with a short period off work, and choose a longer waiting period.
Usually, the premium paid for longer periods off work are lower, because the insurer is less likely to have to make a payment. This is because short-term illnesses and injuries are more common.
The benefit period is the period of time that the insurer will pay benefits for. You can choose a short benefit period of as little as two years, or receive benefits up to the age of 65. In some circumstances you can even receive benefits up to the age of 70.
What Happens If I Need To Make A Claim?
The easiest way to make a claim is to ask us to arrange it for you. We are expert in dealing with insurers and can ensure that everything runs as smoothly as possible.
Baldwin Financial Services is based in Prospect in the northern suburbs of Adelaide.
Contact us to find out how we may be able to help you.