An essential component of any broad financial plan is to ensure that if you are unable to work at any stage during the rest of your working life (age 65-70), you will have a replacement income stream to provide for living costs, your goals and income for asset accumulation and retirement.
Everyone should try and maximise the monthly benefit allowable and to select a policy that provides the best possible definitions for accessing benefits at claim time.
In our community the most common causes of permanent disablement are not remotely occurring accidents as one might envisage, rather back pain and stress related/depressive illnesses.
Please consider the following:
- Should you suffer an event, there is the potential for significant unforseen costs such as medical expenses and rehabilitation costs.
- A need may exist for changes such as modifications to the family home or car to accommodate for your condition.
- Would your income, reduced to a maximum of 75% of existing income (gross), under Income Protection cover be sufficient to service the home debt, provide for living expenses, maintain your family's present lifestyle and service those unforseen expenses?
- With the growth in your earnings permanently ceasing, would this compromise future plans or decisions eg retirement intentions, plans to increase your investment portfolio or plans for the children to attend a private school.
- Superannuation contributions would cease upon suffering a Total & Permanent Disablement event and ceasing work. This will affect the lump sum accruing for later in life.