Income Protection
This form of insurance is available from a wide range of life offices normally as a standalone plan/policy.
It provides you with a monthly income should you become totally disabled and unable to work for a period of time, however disablement may not be of a permanent nature.
Income protection is designed to provide income replacement in the event of you not being able to work.
Who can apply?
Income is generally available to people working at least 30 hours per week in their normal principal occupation or job.
Income protection is available for clients as noted in the table below:
| Benefit period | Entry ages | |
|---|---|---|
| Minimum | Maximum | |
| 2 years | 19 | 60* |
| 6 years | 19 | 60 |
| To age 55 | 19 | 50 |
| To age 60 | 19 | 55 |
| To age 65 | 19 | 60 |
| To age 70 | 19 | 60 |
* Monthly benefits in excess of $40,000.00 are subject to an entry age of 54
Monthly Amount Insured
It should be noted that there is a maximum level of coverage usually up to
75 -80% of your gross monthly earnings. This particular amount would be paid to you on a monthly basis should a claim arise.
Guaranteed Benefit Payment Type
Under this particular option you can choose to lock in or guarantee a monthly income on the basis of a pre-application income. That is based upon your current income; current occupation and financial evidence would need to be provided to apply for this particular provision.
Waiting Period
You can choose a waiting period prior to the claim commencing. In the normal course of business the longer the waiting period, the more affordable the premium; however your options are as follows:
- 14 days
- 30 days
- 60 days
- 90 days
- 180 days
- 1 year
- 2 years
The benefit period on the other hand is a period of payment where the claim would be honoured to you, i.e. after the waiting period monthly payments would be paid for up to:
- 2 years
- 6 years
- to age 55
- to age 60
- to age 65
- to age 70
dependent on age and occupation at time of entry.
What would the premiums be?
| Male – Non Smoker Aged 35 Occupation – Light duties Guaranteed Income Protection Basis (Pre-application income provided) Stepped Premiums |
||||
|---|---|---|---|---|
| Monthly Benefit | Waiting Period | Monthly Benefit Payment to age 70 | Monthly Benefit Payment to age 65 | Monthly Benefit Payment for 6 years only |
$6,250.00 plus superannuation payment of Total = $6,666.00 |
14 days | 180.88 | 172.22 | 125.74 |
| 30 | 102.69 | 97.78 | 73.66 | |
| 90 | 59.07 | 56.30 | 47.41 | |
| 2 years | 52.32 | 49.82 | 41.44 |
- Please note based upon non-smoker rates
- Policy fee and stamp duty needs to be added to these premiums
- Above premium rates are quoted from OnePath Life Company
- Annual premium at age 55 for the above mentioned client would have climbed to $4,351.92 per annum (If elected a level premium from the outset the annual premium at age 55 would be approximately $1,220.40 per annum).
| Male – Non Smoker Aged 35 Occupation – Light duties Guaranteed Income Protection Basis (Pre-application income provided) Level Premiums |
||||
|---|---|---|---|---|
| Monthly Benefit | Waiting Period | Monthly Benefit Payment to age 70 | Monthly Benefit Payment to age 65 | Monthly Benefit Payment for 6 years only |
| $6,250.00
plus superannuation payment of Total = $6,666.00
|
14 days | 273.89 | 245.79 | 179.91 |
| 30 | 157.08 | 140.14 | 103.92 | |
| 90 | 61.62 | 81.16 | 65.42 | |
| 2 years | 79.21 | 70.00 | 55.00 | |
- Please note based upon non-smoker rates
- Policy fee and stamp duty needs to be added to these premiums.
- Above premium rates are quoted from OnePath Life Company