Income protection will pay you an income should you not be able to work due to sickness or accident.

There are many different variables to income protection, each of these variables have an effect on what you are covered for. Some of these variables include

• Waiting period
• Benefit period
• Amount you can be covered for
• Payment structures
• Tax on income protection
• Occupation
• Evolution of income protection

In this series, I’m going to break down into bite sized chunks these different variables.

Waiting Period

The waiting period is the amount of time you have to wait for before the income protection policy will start to pay out.

This period can be anywhere from 2 weeks to 2 years. The longer the waiting period is, the more cost effective the policy will be. For instance, if you have a policy that is 2 weeks, then it is a lot more costly then if you have a policy that it 2 years.

Why would someone have a 2 year waiting period. The reason for this is because they might already have an income protection paid by their employer or superannuation fund that has a 2 year benefit period and are looking to cover them for a longer period of time.

If you are interested in finding out more about income protection or if you have any questions, send me a message and we can have a obligation free consultation.