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  • #983438
    PhalanxFS
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    Hi all,

    Given insurance is something I am a pretty big believer in and its a big part of my business I thought I would throw out the question “Who here has income protection insurance and if not, why not?”

    Personally working as a financial planner I have seen many people influenced either positively or negatively as a direct result of either being appropriately/under insured for all forms of insurance but given this forum is mainly full of small business owners I thought I would check to see who has income protection because I would imagine there may be a need for it from most people on these forums.

    When I first went out on my own it was probably the second thing on my priority list to go get setup and it becomes even more paramount for those of you with debt, young families or both.

    I’m happy to answer any questions anyone might have whilst being mindful I won’t be able to provide personal advice over a forum but keen to hear what peoples thoughts on the topic are.

    Thanks

    Stuart.

    #1142327
    The Copy Chick
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    Hi Stuart, this was something I looked into for myself, but I can’t get cover for the one thing I know I will need cover for (a pre-existing heart condition requiring another valve replacement in 5-10 years).

    So, I’ve opted to pay 10% of my gross earnings into a high interest account to ensure I have enough to cover me when I need it. Sure, I might break an arm, or come down with some nasty bug in the meantime, but I couldn’t see the point of paying hundreds of dollars each year for something which wouldn’t give me cover when I needed it most.

    And if I do have some kind of mishap, I now have a steadily growing balance in my account to cover me.

    That said, I’ve recently seen a financial advisor and am waiting to see if she can provide me with a better alternative… but as far as insurance, they won’t touch me with a 10ft barge pole!

    #1142328
    PhalanxFS
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    The Copy Chick, post: 162753 wrote:
    Hi Stuart, this was something I looked into for myself, but I can’t get cover for the one thing I know I will need cover for (a pre-existing heart condition requiring another valve replacement in 5-10 years).

    So, I’ve opted to pay 10% of my gross earnings into a high interest account to ensure I have enough to cover me when I need it. Sure, I might break an arm, or come down with some nasty bug in the meantime, but I couldn’t see the point of paying hundreds of dollars each year for something which wouldn’t give me cover when I needed it most.

    And if I do have some kind of mishap, I now have a steadily growing balance in my account to cover me.

    That said, I’ve recently seen a financial advisor and am waiting to see if she can provide me with a better alternative… but as far as insurance, they won’t touch me with a 10ft barge pole!

    Hi Copychick,

    Yes unfortunately there are some people that fall outside the insurer’s guidelines or benchmarks making them either uninsurable or their policies have exclusions or loadings making them extremely costly. Your idea is another option for people whereby putting some funds away each week/fortnight to cover yourself in the event of something going wrong. For some people this is really their only option.

    #1142329
    Anneeway
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    Hi Stuart,
    I have signed up again for more income protection insurance this year as my previous package was all lump sum and not claimable. I have been pouring over the paperwork as I get to the bottom of my in tray each week – my policy is so complicated – I have yet to claim any GST portions as I cant figure them out.
    My husband and I have a small carpet cleaning and pest control business so we work hard for our money and have high risk of losing our income is which is pretty modest and we are both getting older and its getting harder to find less risky jobs.
    I am finding that we are spending up to 10% of our income in this insurance alone and Im worried that we still wont have enough cover should we be devastated by an injury or illness. Is this too much?
    I wonder if we should just be saving this portion like Copychick does or enjoying our lives more by taking a nice holiday each year with the premium money!
    Anneeway

    #1142330
    PhalanxFS
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    Anneeway, post: 175992 wrote:
    Hi Stuart,
    I have signed up again for more income protection insurance this year as my previous package was all lump sum and not claimable. I have been pouring over the paperwork as I get to the bottom of my in tray each week – my policy is so complicated – I have yet to claim any GST portions as I cant figure them out.
    My husband and I have a small carpet cleaning and pest control business so we work hard for our money and have high risk of losing our income is which is pretty modest and we are both getting older and its getting harder to find less risky jobs.
    I am finding that we are spending up to 10% of our income in this insurance alone and Im worried that we still wont have enough cover should we be devastated by an injury or illness. Is this too much?
    I wonder if we should just be saving this portion like Copychick does or enjoying our lives more by taking a nice holiday each year with the premium money!
    Anneeway

    Hi Anneeway,

    Without knowing all the details it does sound like your paying to much for your IP cover. There are quite a few ways to get the premiums done including waiting periods, how comprehensive the cover is & who the provider is and how they treat your occupations & medical history.

    Self insurance is one way to protect yourself but its very hard to save enough to cover your expected wage for the rest of your working life. For some people they may have illnesses or conditions that prevent them from being able to insure themselves and this can be a good option however generally its worth exploring whether there is a decent insurance option out there for you first.

    Hopefully without being to forward I’m happy to have a look for you and let you know if there is anything I can do or recommend.

    Thanks Stuart.

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