Horizon Financial Planners: Our role is to ensure your income is protected
should you be unable to work due to sickness & accident.



What is Income Protection Cover?

Income Protection Cover is a monthly benefit paid after a specified wait period
if you are unable to work due to any sickness or accident
whether work related or not.
It is payable until you go back to work (or a partial benefit if you go back part time)
or until expiry age eg 65yrs if you never go back to work.



How much income can I protect?

The maximum amount an insurer will protect is 75% of your annual income.
(Salaries above $280,000 will have a decreasing sliding scale of percentage of cover available)
Example: Your annual income is $80,000 pa
Maximum cover would be 75% over 12 months
Cover will be $60,000 ÷ 12months = $5,000 per month
If you were unable to work due to sickness or accident you would receive $5,000 per month (or partial amount if you were able to work part-time)



When is Income Protection paid?

YOU choose your waiting period 7, 14, 30, 60, 90, 180 days.
(similar to an excess on your car insurance).
Remembering that claims are paid 30 days in arrears, how long could you go without income?
Most people choose 30 days or 90 days.



What is the difference between Agreed Value & Indemnity Policies?

Agreed Value: Financial information is provided to the insurer at the application stage and is agreed to be paid at claim time.
Indemnity: The insurer requires financial information to be provided at claim time to calculate the amount to be paid.
If your income fluctuates in the period prior to a claim this can impact the amount you are paid.

Wherever possible we would recommend an Agreed Value Policy to guarantee the monthly amount you would be paid at claim time.



Are Income Protection payments tax deductible?

Yes.



How long will I receive payments from my Income Protection Cover?

YOU choose how long it will be paid monthly for e.g 2yrs, 5yrs, until age 65yrs or 70yrs.
Considerations:
If you were unable to work & receiving income protection cover which stopped after 2 years, would you have a replacement source of income?
Wherever possible we would recommend cover that would pay you until age 65 or 70 years.



Can an insurer cancel my cover if I have a health issue?

No - provided you continue to pay for your cover & don’t let it lapse



Do I have to disclose ongoing health issues?

No.



What is underwriting?

Underwriting is process the insurer goes through after you lodge an application to determine if they will cover you
If so, are there any special terms and how much they will charge for the cover
Every insurer has its own set of underwriting guidelines.

Some factors the insurer takes into account
⮚ Age & Sex
⮚ Height & Weight
⮚ Smoker or non-smoker
⮚ Occupation
⮚ Occupational Conditions
⮚ Immediate Family Medical history
⮚ Your Medical history
⮚ Adventurous sports

Underwriting involves working out a premium that is low enough to attract a good number of buyers, and high enough so that there will be enough money
in the pooled funds to pay all the claims that might be made, plus make a profit for the insurer’s shareholders.



Do insurers pay?

Yes.
Our experience is that insurers DO want to pay out claims.
However, they want to minimise the amount they pay out based on the contract you have with them.
Our role is to ensure we work with you & the insurer to maximise your claim.



Our philosophy is: Never have more cover than is required for your specific circumstances and always have it price competitive.

Contact us for a free no obligation chat about how
we may be able to help YOU.