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November 26, 2012 at 3:12 am #980815Up::0
Does anyone know of any insurance company offering Income Protection Insurance that covers pre-existing medical conditions?
Having been born with a heart condition, I’ve undergone 3 heart surgeries and will require another valve replacement down the track (6-11 years from now, based on my original 10-15 year window).
I’m having a devil of a time finding anyone who will give me cover for the time I’ll need to take off to have, and recover, from this next surgery, despite the fact that I am otherwise pretty damned healthy! I’ve also been told that if I suffer death or permanent disability in relation to this condition, that it’s unlikely I (or my spouse) will be able to claim any payments from existing policies
It’s also very unlikely I’d be eligible for any assistance from Centrelink since if you have any savings, or your partner/spouse earns more than 4c a week, they figure you’ll be just fine and dandy.
Surely there has to be someone out there to help the self-employed who don’t have sick or annual leave to draw on?
November 26, 2012 at 3:47 am #1125721Up::0While I can’t offer any suggestions for cover, what about setting up your own protection?
Simply put aside a set amount each week (or a percentage from each job) into an interest bearing account to be used as “sick leave”. While it’s not an ideal scenario, if you can’t get cover anywhere at least you’ll save on premiums and have the security of knowing the money’s there.
Wendy
November 26, 2012 at 4:29 am #1125722Up::0Hi Wendy – it’s definitely starting to look like that’s the only viable solution.
So! Next question… which banks/credit unions offer the best interest rates on their accounts?
November 26, 2012 at 5:38 am #1125723Up::0What a sucky situation Anna!
I remember reading in a thread here a little while ago some ‘issues’ others were having with their policies simply because they were business owners, or directors of companies. Where their providers were refusing to pay out because their companies earnt too much (it didn’t seem to matter that the individual didn’t earn all of that, simply being the company director was enough)..So, if you do find someone willing to provide cover – make sure you read any fine print about being self-employed and whether this might play a part in actually receiving a payment when needed.
Without having gone over the small print – Onepath seems like they may provide cover so long as your claim isn’t arising from a pre-existing condition that has occurred in the last 2 years… Given you were born with this condition I can only assume that it occurred more than two years ago
November 26, 2012 at 6:14 am #1125724Up::0Hi Jacqi.. it’s pretty sad how difficult it can be for business owners to protect their interests. Not being a company director, I shouldn’t have any issues with what the business earns, but it’s certainly worth people being aware of.
I’ll also give Onepath a call and see what they have to say. I got the new valve 4 years ago next month, so that was more than 2 years ago! Wonder if that fits their parameters?
Cheers
November 26, 2012 at 7:06 am #1125725Up::0Having spent most of my working life self employed in a high physical risk industry (commercial construction), I have a feel for what your up against … no company wants to know, or cares.
When I was young (quicker reflexes, better chance of survival) I could get crap cover for exorbitant premiums … used to grin and bear it because I had young kids and mortgages.
Now I wouldn’t even bother making the calls … insurance companies are bit like your bank, convince them there’s minimal risk and they’re your best mate … if the odds aren’t stacked heavily in their favour, they won’t even negotiate.
November 26, 2012 at 7:45 am #1125726Up::0They also don’t protect you if you are solo and don’t have permanent regular clients to prove your income, and also once you reach a certain age (mostly 55 up). So the idea of investing for yourself as sick leave is a much better option. ING Direct is good for savings etc. http://www.ingdirect.com.au
November 26, 2012 at 10:56 pm #1125727Up::0Thanks for the suggestion, Karen. I’ll check that out.
BTW – I found out that Virgin Money will give you Life Insurance to cover a pre-existing condition with a 5 year exclusion zone from when you take out your cover… but sadly they still had no options for Income Protection.
November 27, 2012 at 12:04 am #1125728Up::0I have never had income protection as a solo and am now ineligible in my 50s – hubby has long since been ineligible due to age, and he still works fulltime 6 days pw at 71 and is healthy. A younger friend of ours did have some permanent clients and got income insurance – however when they accessed it, it was so difficult that it would have been better saving up instead.
November 27, 2012 at 3:04 am #1125729Up::0Why isn’t that surprising!
Anyhoo, have had a bit of a look around and it seems the best overall rate – at this stage – is the ANZ Progress Saver, which I currently use as a holding account for my GST and PAYG (which I pay annually). They pay 4.91% if you make a minimum $10 deposit p/month and don’t make any withdrawals or transactions (it drops to 0.01% for that month if you do).
A lot of financial institutions had rates of up to 5.35%, but most of those were introductory fees and after 4-6 months, it dropped back to 3.75% or less.
RAMS were another good option, with an account paying 5.17% with a minimum monthly deposit of $200 required (dropping to 3.75% p/month if the minimum wasn’t reached, or withdrawals were made).
Having crunched the numbers for a 10 year period, I think the ANZ account is the better option for me, since I already bank with them, and I only need to deposit $10 to get the high interest rate. The overall potential earnings with the RAMS account was only a couple of hundred more over 10 years, so not worth fussing about to open a new account with a new bank and then potentially paying additional transaction fees.
Hope that helps some of you out there too.
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