If you don’t possess financial savings how can you support your home

If you don’t possess financial savings how can you support your home, pay back your mortgage or put away for the future? You might think Workers Compensation will cover your costs in the case of an mishap, but Workers Compensation protects you if your injury is connected with work.
How much income protection cover do I need?
The amount of income protection cover you require will be determined by your salary. In Australia the maximum amount of cover you can get is usually limited to:
If you are employed: 75% of your existing gross salary (including employer packaged fringe benefits and superannuation contributions).
For self employed: 75% of the income generated by the company due to your individual endeavour less your share of expenditures.
A lower percentage of income may apply above certain income limits ($250,000 for example) and overall maximum
Income Protection Insurance Premiums are set depending on:
Age - The cost of obtaining cover generally increases over time
Health and pre-existing conditions
Whether or not you smoke - If you are a smoker, or if you have smoked within the last 12 months you will pay more in premiums compared to a non-smoker. However should you already have a policy and premium based on smokers’ rates and you have not smoked in the last 12 months you may be able to have your premiums reduced back to non-smokers rates.
Occupation - If you are involved in a hazardous occupation or where there are more risks involved, you will pay a higher premium compared to a professional office worker.
Waiting period - i.e. how long can you be off work before you require the income to commence. Generally the waiting periods range from 2 weeks to 2 years.
Benefit Period - This is the maximum length of time following the waiting period that the policy will pay the benefit for. These can either be for a set period (2 year, 5 year) or until a certain age (to age 65). If you are able to return to work because you have recovered from your sickness or injury then the monthly benefit will cease at that time.
Additional policy features - Whether you would like a ‘comprehensive’ or ‘basic’ policy or any additional features will also affect the cost of cover.
What should I pay for income protection insurance?
Income protection premiums vary greatly across the market place depending on the level of protection you are after. Prices vary depending on age, the salary you want to insure and other factors, but as a general rule, income protection in Australia can cost around one week’s salary per year (approximately 2% of your annual salary). And for most taxpayers premiums are tax deductible.
Income protection cover provides cover for individuals, twenty four hrs a day, anyplace in the world, regardless of impairment.

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author: insurance right 4 you <www.onlinelifeinsurancequote.net.au <www.lifeinsurancequoteaustralia.com

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