Income Protection
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Income Protection
Good day all,
I had a look around and I seem to be hitting a bit of trouble finding an income protection. I can find loss of licence lump sum pay outs however im looking for an income protection that will pay out monthly until retirement age. Does anyone know of any here in Australia?
Any help would be greatly appreciated
Thank you
I had a look around and I seem to be hitting a bit of trouble finding an income protection. I can find loss of licence lump sum pay outs however im looking for an income protection that will pay out monthly until retirement age. Does anyone know of any here in Australia?
Any help would be greatly appreciated
Thank you
Good day all,
I had a look around and I seem to be hitting a bit of trouble finding an income protection. I can find loss of licence lump sum pay outs however im looking for an income protection that will pay out monthly until retirement age. Does anyone know of any here in Australia?
Any help would be greatly appreciated
Thank you
I had a look around and I seem to be hitting a bit of trouble finding an income protection. I can find loss of licence lump sum pay outs however im looking for an income protection that will pay out monthly until retirement age. Does anyone know of any here in Australia?
Any help would be greatly appreciated
Thank you
Aside from availability, the cost is going to be your next problem.
I had Comminsure years ago but the premiums (and rate or premium increases) meant ditching it after a short time.
Also check the details on whether the payout is indexed or not in the event of a claim, and the conditions under which a claim is paid vs you being able to do paid work.
It might be that in the event of a claim you can work a full time min wage job (and will be expected to) and those earnings may come off any potential payout. All in all, the entire product may lose some of its shine for you. Or not.
I had Comminsure years ago but the premiums (and rate or premium increases) meant ditching it after a short time.
Also check the details on whether the payout is indexed or not in the event of a claim, and the conditions under which a claim is paid vs you being able to do paid work.
It might be that in the event of a claim you can work a full time min wage job (and will be expected to) and those earnings may come off any potential payout. All in all, the entire product may lose some of its shine for you. Or not.
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If you think about it carefully you’ll realise why it’s so expensive and usually doesn’t exist. It’s not a good risk for the insurance company. Say you sign up at 25 years old and a year later you find out you are a diabetic, there would need to be a cap on it or it will cost them a fortune!
Mid 40s, no health issues, 8 k per month to age 60 with AIA, $9k per annum. 😬
Tax deductible. Thats with a two year waiting period as that two years is covered by the super fund.
That should be a warning to anyone considering getting into this industry, as it’s representative of the level of risk to your future earning capacity in the event of a medical issue. Much more expensive to insure than other industries.
Also, paying an additional 7k p/a in insurance premiums through the super fund though!! (Not directly tax deductible, the fund claims a tax deduction but you don’t get it directly).
At some stage I’ll probably have to drop that insurance through the super fund entirely (can’t reduce the cover, only drop it) as the way premiums are tracking in a few years they will exceed the concessional contributions limit ie. I’ll be effectively putting in $0 in contributions.
By that stage, I’ll probably be at about 50k p/a in premiums, projecting ahead.
The aim has to be to build up an asset base to generate sufficient income to protect your family in the event that something happens to you, before the cost of insurance becomes prohibitive and you look to drop it (like I will probably have to).
All up, it’s close to 16k p/a in death, tpd and LOI insurance for me this year. It’s a problem.
Tax deductible. Thats with a two year waiting period as that two years is covered by the super fund.
That should be a warning to anyone considering getting into this industry, as it’s representative of the level of risk to your future earning capacity in the event of a medical issue. Much more expensive to insure than other industries.
Also, paying an additional 7k p/a in insurance premiums through the super fund though!! (Not directly tax deductible, the fund claims a tax deduction but you don’t get it directly).
At some stage I’ll probably have to drop that insurance through the super fund entirely (can’t reduce the cover, only drop it) as the way premiums are tracking in a few years they will exceed the concessional contributions limit ie. I’ll be effectively putting in $0 in contributions.
By that stage, I’ll probably be at about 50k p/a in premiums, projecting ahead.
The aim has to be to build up an asset base to generate sufficient income to protect your family in the event that something happens to you, before the cost of insurance becomes prohibitive and you look to drop it (like I will probably have to).
All up, it’s close to 16k p/a in death, tpd and LOI insurance for me this year. It’s a problem.
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Mid 40s, no health issues, 8 k per month to age 60 with AIA, $9k per annum. 😬
Tax deductible. Thats with a two year waiting period as that two years is covered by the super fund.
That should be a warning to anyone considering getting into this industry, as it’s representative of the level of risk to your future earning capacity in the event of a medical issue. Much more expensive to insure than other industries.
Also, paying an additional 7k p/a in insurance premiums through the super fund though!! (Not directly tax deductible, the fund claims a tax deduction but you don’t get it directly).
At some stage I’ll probably have to drop that insurance through the super fund entirely (can’t reduce the cover, only drop it) as the way premiums are tracking in a few years they will exceed the concessional contributions limit ie. I’ll be effectively putting in $0 in contributions.
By that stage, I’ll probably be at about 50k p/a in premiums, projecting ahead.
The aim has to be to build up an asset base to generate sufficient income to protect your family in the event that something happens to you, before the cost of insurance becomes prohibitive and you look to drop it (like I will probably have to).
All up, it’s close to 16k p/a in death, tpd and LOI insurance for me this year. It’s a problem.
Tax deductible. Thats with a two year waiting period as that two years is covered by the super fund.
That should be a warning to anyone considering getting into this industry, as it’s representative of the level of risk to your future earning capacity in the event of a medical issue. Much more expensive to insure than other industries.
Also, paying an additional 7k p/a in insurance premiums through the super fund though!! (Not directly tax deductible, the fund claims a tax deduction but you don’t get it directly).
At some stage I’ll probably have to drop that insurance through the super fund entirely (can’t reduce the cover, only drop it) as the way premiums are tracking in a few years they will exceed the concessional contributions limit ie. I’ll be effectively putting in $0 in contributions.
By that stage, I’ll probably be at about 50k p/a in premiums, projecting ahead.
The aim has to be to build up an asset base to generate sufficient income to protect your family in the event that something happens to you, before the cost of insurance becomes prohibitive and you look to drop it (like I will probably have to).
All up, it’s close to 16k p/a in death, tpd and LOI insurance for me this year. It’s a problem.
That makes it pretty unsustainable in the long run
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I am 61.5 years old and invested $200.00 dollars per fortnight into a listed investment company ARGO and a few other ASX listed companies instead of loss of licence insurance throughout my 42 year career. It is worth roughly $350,000.00 now, depending on the market on a particular day. I am fortunate that I am currently healthy and hope I can stay that way, I have no problem with medicals so it seems to have paid off. I am lucky I work for a great company
That was my strategy. Some of my colleagues joined the AFAP and signed up to their loss of licence cover, which was pretty generous as it returned the premiums paid at retirement, not sure if that still exists.
Our company pays a portion of the cost of insurance if you want your own cover but covers us for a blanket $300,000.00 which reduces to zero once you reach 65 as part of our EBA..
Hope that gives you some ideas.
Cheers,
Craven.
That was my strategy. Some of my colleagues joined the AFAP and signed up to their loss of licence cover, which was pretty generous as it returned the premiums paid at retirement, not sure if that still exists.
Our company pays a portion of the cost of insurance if you want your own cover but covers us for a blanket $300,000.00 which reduces to zero once you reach 65 as part of our EBA..
Hope that gives you some ideas.
Cheers,
Craven.
I think more likely is that it is too niche for them to do the probability research so most just don't bother with it because it's easier to ensure the 99% of other professions that don't have ANY medical requirements.
Hi mikewil
Type 1 diabetes is not a disqualifying condition here in Oz. There are several airline Capt who are T1 and hold Class 1 medical.
This is a fact, I know a couple personally.
Type 1 diabetes is not a disqualifying condition here in Oz. There are several airline Capt who are T1 and hold Class 1 medical.
This is a fact, I know a couple personally.
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Wasn't our great and glorious union covering LOL insurance? Wasn't that the great drawcard to be a member?
The best income protection insurance a pilot can buy is another qualification or skill that enables you to work if you lose your licence.
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I’d highlight this again.
Life and loss of income insurance, in this day and age, if you’re buying it in the private market, isn’t sustainable as you approach perhaps 55.
To my way of thinking, it covers the catastrophic, unexpected event in your 30s or early 40s that will see your family lose the house.
It’s not to allow your family to maintain their expected lifestyle if you die or lose your medical in your 50s or early 60s.
It’s something you need to consider as you age in this profession and the risk of losing your medical or having a catastrophic event increases.
It should be a consideration, and perhaps a warning, to those considering entering the profession. It’s a risk to your family’s future wealth and wellbeing that is difficult to manage as you age. It’s another reason salaries should be high. These risks are largely borne by the individual in many instances, even allowing for some loss of licence payouts in various EAs.
The aim has to be to build up an asset base to generate sufficient income to protect your family in the event that something happens to you, before the cost of insurance becomes prohibitive and you look to drop it.
Life and loss of income insurance, in this day and age, if you’re buying it in the private market, isn’t sustainable as you approach perhaps 55.
To my way of thinking, it covers the catastrophic, unexpected event in your 30s or early 40s that will see your family lose the house.
It’s not to allow your family to maintain their expected lifestyle if you die or lose your medical in your 50s or early 60s.
It’s something you need to consider as you age in this profession and the risk of losing your medical or having a catastrophic event increases.
It should be a consideration, and perhaps a warning, to those considering entering the profession. It’s a risk to your family’s future wealth and wellbeing that is difficult to manage as you age. It’s another reason salaries should be high. These risks are largely borne by the individual in many instances, even allowing for some loss of licence payouts in various EAs.
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Have spoken to a few insurance companies and is seems that pilots in Australia can no longer get income protection. Sounds like with the increasing costs of old policies they steering people towards cancelling existing ones too.
Seems like even getting the TPD cover is difficult, I have had a consultation with AIA and the say they don't provide pilots with TPD cover. The only cover offered is Death and Trauma cover which is only good major problems and seems like getting the payout will be difficult. I guess something to consider for anyone who has active income protection and TPD cover that I won't be available again if cancelled.
Seems like even getting the TPD cover is difficult, I have had a consultation with AIA and the say they don't provide pilots with TPD cover. The only cover offered is Death and Trauma cover which is only good major problems and seems like getting the payout will be difficult. I guess something to consider for anyone who has active income protection and TPD cover that I won't be available again if cancelled.
