I recently received a call from one of my clients who runs a medium sized electrical contracting business. He told me that his company has made a considerable loss in the last financial year, and this has caused his personal tax to basically be $0 for that period.
His concern was if he were to become disabled, would his Income Protection be paid because he didnt tecnhically earned anything last year?
Normally, insurers base their claims on the insured’s previous 1-3 years income and average those years income to get a benefit amount, but due to our diligence and setting up the ‘Agreed Value’ policy for him, he simply has to prove if he is disabled is that he was earning an income at time of application!
This was great news to him, as now if he injured at work, and needs to claim on his income protection, he knows that a claim will be assessed, and if approved the ‘Agreed Value’ would be paid. This will allow him to return to work at his own pace.
The lesson here is you get what you pay for! Those other insurers may be cheaper on their monthly premium by 5-10%, but in this case, this client would have had to either stop or cancel his policy.
It’s an old lesson, but still a valuable one.
If you or your clients have an Income Protection policy, let us have a look at it, and show you whether it covers all the bases. You can Email Us or call 1800 674 435.