We have found that the financial consequences of a disability could be devastating for you or your business and those that depend on you. An average income earns in excess of $1.5 million throughout a working lifetime and a far greater amount for business owners. A prolonged absence from work or a return to work in a reduced capacity could have a severe impact on people's financial security.
Statistically for every house lost through a fire there are 4 houses lost due to a death where the owners had no life cover. However, there are 60 houses lost compared to each one lost due to fire because of a disability due to no Income Protection and the home has to be sold as the owners cannot maintain mortgage payments.
Income Protection plans has a range of features and additional options that allow you to customize the products to suit your individual circumstances. You are considered disabled when you are under the regular care of a doctor and because of your disability you are unable to work in your own occupation for 10 hours per week and are not working.
Instances such as viral infection, chronic headaches, RSI, Depression, Hepatitis C, Shingles, Stroke and Cancer are examples of issues that have made people unable to continue working and loose their incomes. In all of the above cases the Insurer has paid until the person involved was well enough to return to work which has enabled the person to maintain their financial commitments such as mortgage payments, leases, rates, food bills etc.
The premium has now been made tax deductible for employers and FBT has been removed making it more worthwhile to provide cover for staff should their incomes stop or be reduced. (There is also a partial income protection cover built in.)
Should a staff member have a long term illness, Income Protection is a blanket cover which pays staff even on a short term illness and is based on a Doctors certificate stating they cannot work.
Income Protection policies are fully tax deductible as a business expense.