1 whether you choose the guaranteed or reviewable Income Protector option (regular payments with the guaranteed option are more expensive, but they will remain the same for the term of your plan unless you choose to change the level of cover);
2 your age
3 your sex
4 your occupation
5 whether you smoke
6 your deferred period and the age at which your cover ends
7 your health.
What is the difference between escalation and indexation?
Indexation
Your cover increases each year during the life time of your plan.
Escalation
Once the claim is in payment, the benefit paid to you will increase only if you have
chosen escalation. If you did not choose escalation at the start of your plan and then subsequently made a claim, the incapacity benefit paid would not increase during the period of time you are eligible to claim the benefit.
Do I get tax relief on my payments?
Under current tax law (May 2009), payments to this Income Protection plan are eligible for full tax relief at your marginal rate of income tax. The maximum amount of payments you can claim tax relief on is limited to 10% of your total income for the year of tax assessment.
When will my benefit payments start?
This depends on what deferred period you have chosen. (The deferred period is the continuous
amount of time you have to be off work due to an illness or injury before the incapacity benefit will be paid.) Your deferred period can be 7, 13, 26 or 52 weeks.
How long will your benefit be paid for?
Your benefit will be paid until:
• you return to work;
• you reach the age at which your cover ends;
• you die;
whichever happens first
Do regular payments need to be made while I am claiming?
While you are receiving benefit, you do not need to make payments and the cover will stay in force. Your regular payments will start again when your benefit ceases.
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Income Protection – Frequently Asked Questions
How much does Income Protection cost?
The cost of cover depends on:
1 whether you choose the guaranteed or reviewable Income Protector option (regular payments with the guaranteed option are more expensive, but they will remain the same for the term of your plan unless you choose to change the level of cover);
2 your age
3 your sex
4 your occupation
5 whether you smoke
6 your deferred period and the age at which your cover ends
7 your health.
What is the difference between escalation and indexation?
Indexation
Your cover increases each year during the life time of your plan.
Escalation
Once the claim is in payment, the benefit paid to you will increase only if you have
chosen escalation. If you did not choose escalation at the start of your plan and then subsequently made a claim, the incapacity benefit paid would not increase during the period of time you are eligible to claim the benefit.
Do I get tax relief on my payments?
Under current tax law (May 2009), payments to this Income Protection plan are eligible for full tax relief at your marginal rate of income tax. The maximum amount of payments you can claim tax relief on is limited to 10% of your total income for the year of tax assessment.
When will my benefit payments start?
This depends on what deferred period you have chosen. (The deferred period is the continuous
amount of time you have to be off work due to an illness or injury before the incapacity benefit will be paid.) Your deferred period can be 7, 13, 26 or 52 weeks.
How long will your benefit be paid for?
Your benefit will be paid until:
• you return to work;
• you reach the age at which your cover ends;
• you die;
whichever happens first
Do regular payments need to be made while I am claiming?
While you are receiving benefit, you do not need to make payments and the cover will stay in force. Your regular payments will start again when your benefit ceases.
For further information, please email noelette.hassett@gmail.com or call 086 0394816.