What Factors Affect the Cost of Income Protection Insurance?
Let’s not beat around the bush–income protection insurance is not cheap. Nonetheless, there’s a good reason for that. You’re insuring your most valuable asset: your ability to earn an income.
That being said, not everyone pays the same rate. Two individuals earning the same salary might have very different premiums, and it often leaves most people wondering, “why is mine so high?” or “what’s actually driving the cost of my policy?”
So, here’s a proper breakdown of the key factors that influence the cost of your income protection insurance–the factors that insurers actually care about, and what you can (and can’t) control.
Your Job
This is probably the most important factor.
Insurers look closely at what you do for a living, because that tends to directly impact how likely you are to get injured or sick and how long you might be off the tools.
So, if you’re a tradie on-site every day, climbing ladders or handling heavy equipment, you’re bound to be rated as higher risk compared to, say, a marketing consultant sitting at a desk all day. It doesn’t matter how fit or experienced you are, it’s all about statistical risk.
Generally speaking, jobs fall into risk categories, and that changes your premium. The more physical or high-risk your work, the more you’ll pay in monthly premiums. Regardless, don’t let that put you off, income protection is even more essential if you do work in a risky role.
Your Age
No surprise here. The older you get, the higher your premiums.
Why? Because your risk of illness and injury increases with age. Insurers know that recovery can take longer, and the chance of something serious popping up (i.e. back issues or chronic illness) goes up as you get older.
That said, most of the time, if you lock in a policy while you’re younger and healthier, you can often hold onto the lower premium for the life of the policy. So, the earlier you sort it out, the better.
Your Health and Medical History
This one’s significant, and it can get complicated.
When you apply for cover, insurers will almost always ask about your health history. That includes any pre-existing medical conditions, past surgeries, mental health history, and lifestyle habits. If there’s anything in your medical background that raises a red flag, insurers might:
- Increase your premium value.
- Add exclusions to the policy.
- Or in some cases, decline cover altogether.
While it’s not always a dealbreaker, it will affect the cost of your policy. This is why being upfront during the application process is key. A good broker will help you navigate this without tanking your chances of getting covered.
Smoking and Lifestyle Habits
If you’re a smoker, you can expect to pay more–a whole lot more.
Smokers pay significantly higher premiums than non-smokers. Why? Well, because statistically, smoking increases the risk of just about everything, from heart disease to cancer and respiratory issues.
Other lifestyle factors such as heavy alcohol consumption or high-risk hobbies (i.e. skydiving, motorsports, mountaineering) can also affect your premiums or attract exclusions. Once again, it all comes down to risk. If you’re engaging in lifestyle habits or hobbies that make you more likely to get injured or ill, you’ll pay for it in the policy.
How Much You Want to Be Paid (Benefit Amount)
This one’s straightforward. The more of your lost income you want replaced, the higher your premium.
Most policies will cover up to 70% of your gross income plus super guarantee contributions, but you don’t have to insure the full amount. Some people choose to pay a lower benefit if they’ve got other savings, a partner’s income, or just want to keep premiums down. However, it’s important to remember not to short-change yourself when you’re off work and counting every dollar.
Waiting Period
This is the amount of time you’ll need to wait after making a claim before payments start coming through. Common waiting periods are 30, 60, or 90 days. The shorter the wait, the higher the cost. This is because you’re asking the insurer to step in sooner to process your claim. If you can afford to wait a little longer, maybe you’ve got enough sick or annual leave and some savings, you can bring the cost of the premium down.
Benefit Period
This refers to how long the policy will pay you if you’re off work long-term.
Options typically range from two years and usually up to age 65. The longer the benefit period, the more you’ll pay–but that also comes with more protection. If your injury or illness drags on, that longer cover can be the difference between financial stress and peace of mind.
Again, think about your job. If you’re in a role where recovery might take a while, or you’re your household’s main source of income, longer cover is worth considering.
Policy Type and Add-Ons
All income protection policies are indemnity (based on your income at the time of claim). Agreed value policies used to be more expensive and have been phased out unless you already have an existing older policy. Add-ons like indexation (where your benefit increases with inflation), will also raise the premium.
Need Help With Insurance? We’ve Got You
At the end of the day, income protection isn’t about finding the cheapest policy–it’s about finding the right policy.
There are plenty of moving parts that affect the cost, but with the right advice and a broker who listens to your needs, you can structure a policy that’s both affordable and tailored to your needs.
At Morgan Insurance Brokers, that’s exactly what we do. Whether you’re just starting out, self-employed, or looking to review an old policy, we’ll help you get the protection you need–without paying more than you need to.
Contact us today for more information on how we can help you.
The Top 5 Common Misconceptions About Income Protection Insurance
Income protection insurance, you’ve probably heard of it, maybe even considered it, but chances are, it’s still sitting in the “I’ll look into that later” pile. And honestly? That’s understandable. It’s one of those things people often don’t prioritise until life throws a curveball.
But the thing is, a lot of the hesitation around income protection stems from common myths, the kind that get passed around in casual conversations or buried in Reddit threads.
Hence, let’s unpack five of the biggest misconceptions holding people back from getting the cover they might actually need.
Misconception #1: It Only Covers Serious Accidents
One of the most persistent myths is that income protection is just for freak accidents, i.e. car crashes, falling off a roof, major trauma. And while it does cover serious accidents, it's important to note that– that’s just a slice of the picture.
What many don’t realise is that most income protection claims are actually due to illness such as cancer, chronic fatigue, back pain, long-term Covid complications, and even stress and burnout. If you’re too unwell to work (mentally or physically) and you meet the policy’s conditions, income protection steps in.
Misconception #2: It’s Too Expensive for What You Get
Lots of people assume income protection is only for high earners. But here's the thing: the pricing is actually quite flexible, and policies can be tailored to your budget.
The key factors that affect your premium? Age, occupation, smoking status, waiting period, and benefit duration. Want to lower your premium? Opt for a longer waiting period or a shorter benefit period.
And when you stack it up against losing your income for months (or longer), the value becomes pretty obvious. Even a modest payout, say 70% of your income, can help cover rent, groceries, school fees, or mortgage repayments when you’re off work.
Also worth noting? Income protection premiums are often tax-deductible, depending on how the policy is structured. That alone can make the cost much more manageable.
Misconception #3: Workers’ Compensation or Sick Leave is Enough
We get it, it’s easy to assume that your employer or the government has you covered. And to some extent, they do. But it’s rarely enough to cover long-term leave.
Workers’ compensation only kicks in if your injury or illness is directly related to your job, and even then, it can be limited. Sick leave, meanwhile, is often capped at a few weeks. It’s great for short-term recovery, but what if you're unable to work for longer?
Income protection fills that gap. It’s not about replacing what you already have, it’s about complementing it.
Misconception #4: It Won’t Cover Mental Health Conditions
Mental health issues are one of the leading causes of workplace absence in Australia, and many insurers have responded by expanding their cover accordingly.
Today, most modern income protection policies do include mental health, provided it’s diagnosed and documented by a professional. That said, not all policies are created equal, and some may include mental health exclusions or stricter waiting periods.
What’s important here is clarity. If mental health cover matters to you (and honestly, it should), check the fine print or speak to an insurance broker. Better yet, disclose any relevant history upfront, that way, you know exactly what you’re covered for.
Misconception #5: “I Don’t Need It, I’m Young & Healthy”
When you’re young, you’re statistically less likely to claim, which means your premiums are lower and your cover options are wider. You’re also more likely to be approved without exclusions or loadings (higher costs) for pre-existing conditions.
Income protection is like an umbrella. The time to get one isn’t when it’s already raining. It’s while the sun’s still out.
Get Insured Today– Before Life Happens
No one likes to think about being unable to work. But for many Australians, it often happens unexpectedly. And when it does, it’s good to have income protection insurance. It’s essentially the difference between financial freefall and stability.
So, if you’ve been putting it off, maybe because of one of the myths above, now is a good time to rethink things. Talk to an expert, ask the right questions, and most importantly, read the fine print.
If you need assistance obtaining income protection insurance or have questions about the details, contact us to speak with one of our experienced brokers.
How Much Income Protection Insurance Do You Really Need?
Here’s the truth: there’s no neat, one-size-fits-all number when it comes to income protection insurance–and any broker that tells you otherwise is probably more interested in a quick policy sale than actually protecting your livelihood.
So, let’s break it down properly.
First, What is Income Protection Actually For?
Income protection insurance steps in when you can’t. It’s specifically designed to replace a portion of your income if you’re unable to work due to illness or injury, up to 70% of your regular pay. It’s not designed to make you rich, but what it does do is give you breathing room–enough to keep the lights on, the rent/mortgage paid, and food on the table while you prioritise getting back on your feet.
But how much do you really need? That’s where it gets personal.
Start With Your Monthly Essentials
This is exactly where most people underestimate things. Income protection isn’t just about covering your lost salary, it’s about helping you manage your basic needs, such as:
- Rent or mortgage payments
- Groceries
- Utility bills
- Petrol or public transport
- Phone and internet bills
- Kid’s school fees (if that applies to you)
- Debt repayments (credit cards, loans, etc).
Now, add a bit of buffer room. You might be spending more at home if you’re recovering, i.e. extra heating, takeaway meals, medical appointments. Likewise, don’t forget to take into account private health insurance premiums if you’re paying them out of pocket.
Tally that all up. The sum is the bare minimum you need your income protection policy to cover each month.
Now Consider Your Lifestyle
Not everything you budget for is essential, but it still matters. Most people don’t want to downgrade their lifestyle while recovering, and frankly that’s fair enough. You’re already off work, dealing with doctors, and stuck at home. You don’t want to also cancel your monthly subscriptions, give up your streaming services, or feel like you’re losing more than you already have.
We’re not suggesting that you be able to cover every last luxury,but aim for enough coverage that you can maintain a sense of normalcy in your life. If the ultimate goal is to recover and return to work, keeping some semblance of your usual life makes that transition much easier, both mentally and emotionally.
What’s Your Current Income?
Income protection is usually capped at a percentage of your pre-tax income, oftentimes at 70% or less. Some policies might offer more, particularly if they include super contributions.
For instance, if you’re earning $6000 per month before tax, your monthly benefit might max out at $4200. That’s what you’ve got to work with. Now compare that against your monthly expenses and lifestyle costs? Is it enough?
If not, you might want to look at additional policies, trauma insurance, or even consider topping up with savings or a rainy-day fund.
Consider the Waiting Period
The waiting period is how long you’ll need to wait before your policy starts paying out. Common waiting periods tend to be 30, 60, or 90 days long.
The longer the wait, the cheaper the premium. But the real question is: how long can you realistically go for without an income?
If you’ve got a decent amount of sick or annual leave built up, you might be able to get away with a longer waiting period, but if you’re self-employed, casual, or don’t have that safety net, you’ll want a shorter waiting period, even if it might cost more.
How Long Should It Pay Out For?
This represents your benefit period. Some policies pay out for a maximum of two years, while others may cover you till you’re 65. The longer the benefit period, the higher the premium, but again, it depends on your job, health, and financial plan.
For instance, if you’re in a trade or physically demanding role, and an injury could take you out long-term, a two-year policy probably won’t cut it. Likewise, if you’re still early in your career and building up assets, you might want the reassurance of longer cover.
Don’t Just Pick a Policy and Forget It
Your income protection needs aren’t static. Got a pay rise? Had a kid? Maybe you bought a house? Your policy should change with your life. A lot of people set up their income protections when they first get a job, and then never look at it again.
You should at least be reviewing your cover every couple of years, or any time there’s a major life change. Otherwise, you might find yourself uninsured just when you need it most.
So, How Much Do You Really Need?
At the very least, enough to cover your core monthly expenses–rent, mortgage, food, utilities, and/or debt repayments. That’s a non-negotiable. From there on, it depends on how much of your lifestyle you want to protect and how long you could survive for without a stable/regular income.
The good news? You don’t have to figure this out all alone.
At Morgan Insurance Brokers, we’ve helped tradies, business owners, freelancers, and families all across Australia get the right income protection insurance policy for their needs. We’ll work closely with you to tailor a policy that’s grounded in your real-life numbers, not just what some insurers form says you might need.
Whether you’re just starting out or reassessing after years on the same policy, we’ll help match you with the right cover, one that helps you maintain as much normalcy as possible when life throws you a curveball.
Contact us today for more information on how we can help you.
Can Income Protection Insurance Be Used for Mental Health Conditions?
If you’ve ever needed time off work for anxiety, depression, burnout or another psychological condition, you’ll know the impact it can have, not just on your wellbeing, but on your income. It’s a growing concern too. More Australians are taking leave due to mental health issues than ever before, and for some, that’s where income protection insurance steps in.
But can it actually cover time off due to mental illness? The short answer is yes, though it depends on your policy, the severity of your condition, and how your insurer assesses your claim. It’s not always straightforward, but it’s worth understanding your options.
For more information on income protection insurance, read this.
Types of Mental Health Conditions Commonly Covered
According to a National Study of Mental Health and Wellbeing, approximately 42.9% of Australians aged 16-85 have experienced a mental disorder at some point in their lives. In fact, mental health conditions have emerged as the leading cause of income protection and total and permanent disability (TPD) claims for several years.
This alone underscores the significant impact of mental health conditions on the Australian workforce and the importance of income protection insurance in providing financial support during periods when individuals are unable to work due to mental health issues.
While income protection insurance is typically associated with physical injuries or illnesses, most comprehensive policies also cover a range of mental health conditions. This typically includes:
- Depression, one of the most common claims, especially when severe and diagnosed by a medical professional.
- Anxiety disorders, generalised anxiety, panic disorders, and social anxiety may be covered if symptoms significantly impair your ability to work.
- Post-Traumatic Stress Disorder (PTSD), often linked to trauma, including workplace incidents, and must be diagnosed by a psychiatrist or psychologist.
- Bipolar disorder, this tends to involve stricter conditions and more frequent reviews, but is often eligible under long-term claims.
- Adjustment disorder and burnout, while harder to prove, these are increasingly recognised as valid causes for extended sick leave.
Not every policy covers all of the above, and some may include mental health exclusions unless disclosed during the application. The key is transparency: if you’re upfront with your medical history when applying, you’re more likely to be covered down the line.
Policy Terms to Be Aware of
This is where things get a bit nuanced. Just because a policy can cover mental health doesn’t mean it will, or that it will do so without a few caveats. Here are a few things to watch for:
- Exclusions, some insurers still include general exclusions for mental health conditions. Others might exclude pre-existing conditions, especially if you’ve had treatment within a certain timeframe before taking out the policy.
- Waiting periods, most policies have a waiting period. This means you won’t receive payments immediately after taking leave, you’ll need to be off work for the entire waiting period first.
- Benefit periods, depending on your policy, you might be entitled to income support for two years, five years, or until a certain age. Long-term claims for mental health can be reviewed more rigorously than physical ones.
- Partial disability claims, if you can return to work in a reduced capacity, say, part-time or in a different role, you may be eligible for partial benefits, depending on your policy’s structure.
- Medical evidence, mental health claims almost always require supporting evidence from specialists. Regular GP notes may not be enough.
3 Steps to Claiming Income Protection Insurance for Mental Health Conditions
So how does one actually go about making a claim?
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- First, before approaching your insurer, consider speaking to your GP or a mental health professional first. It’s mandatory to have an official diagnosis and clear recommendation that you’re unfit to safely perform your job duties. This documentation then becomes the foundation of your claim.
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- Next, notify your insurance provider that you now intend to file a claim. They’ll provide you with a form that will outline what’s needed, typically including:
- The initial GP report
- A certified copy of your identification
- The policy schedule
- All standard claim forms and other relevant documentation or reports.
- Next, notify your insurance provider that you now intend to file a claim. They’ll provide you with a form that will outline what’s needed, typically including:
- Last but not least is the assessment and decision process. This can take some time as the insurance company will meticulously assess your claim based on the severity of your condition. IF approved, you’ll then begin receiving payments (after the waiting period ends) to help cover your income while you recover.
Pro Tip: Keep detailed records, everything from appointment notes to communications with your insurer. It’ll make a huge difference if a dispute arises.
Choosing the Right Policy
It’s definitely tempting to omit certain parts of your mental health history to secure lower premiums. But remember, this can backfire if and when you need to make a claim. A good insurance broker can help you find cover that doesn't penalise you for being upfront.
Get in touch today to find out how we can support you.
Commercial Asset Finance: What You Need to Know About Leases, Hire Purchases, and Loans
The business landscape has always been competitive- and always will be. For any company looking to grow and scale, significant investment is required, not just upfront but at regular intervals to stay ahead with the latest technology that enhances operational efficiency and business profitability.
While you may already be familiar with strategies like commercial asset finance to support business growth, you might still be unsure about how it works and how it could benefit you. Likewise, you may not have received the guidance needed to explore this financial tool effectively.
To help, here’s a breakdown of some key terms commonly used in the world of commercial asset finance.
Commercial Asset Finance Explained
In essence, commercial asset finance helps keep your business operations running smoothly and growing by allowing you to acquire essential assets while managing your cash flow effectively.
The process typically begins with identifying the equipment your business needs– that’s the easy part. The challenge comes when you realise you may not have the funds to finance all of it upfront. In some cases, depending on the type of asset, purchasing outright might not even be the most practical option.
This is where commercial asset finance comes in. It enables you to acquire necessary assets such as machinery, equipment, vehicles, office technology, medical systems, and energy solutions without having to pay the full cost upfront.
Instead, payments are spread over time, helping you maintain healthy cash flow. In some cases, you may even have the option to rent equipment, allowing you to upgrade to the latest technology as it becomes available.
3 Types of Commercial Asset Finance
There are various types of asset finance, but three of the most common are leases, hire purchases, and loans.
Leases
A lease is an agreement that allows a business to use an asset for a fixed period, typically with payments made monthly, quarterly, or annually. In some cases, at the end of the lease term, the business may have the option to purchase the asset at its current market value, which is often lower than the initial cost. In Australia, there are three main types of leases:
A finance lease is used for high-value purchases. This type of lease transfers the risks and rewards of ownership to the business. The business is responsible for maintaining the asset and managing any associated risks.
An operating lease is a mid-term lease ideal for assets that may become outdated over time. Unlike a finance lease, the lender retains ownership and assumes the risks associated with the asset.
A novated lease is specific to vehicle leasing. This arrangement allows businesses to enable employees to finance a vehicle and its running costs through salary sacrifice. The vehicle is primarily for personal use by the employee.
Hire Purchases
Just as the name suggests, a hire purchase agreement involves a buyer making continuous installment-like payments until the total purchase price, including interest is paid off.
Within a hire purchase agreement, you have the option to pay for the full purchase price of the item at any point during the agreement period. If you can’t keep up with the agreed payment terms, the item may be repossessed by the seller.
Loans
Sometimes referred to as a ‘chattel mortgage’, an equipment loan may be suited towards businesses that want to own the equipment outright. Typically, a chattel mortgage follows a similar structure as a traditional home loan or a mortgage.
In contrast to a hire purchase agreement or a lease, a loan gives you the ownership of the item straightway. All you need to do is pay off the loan through an agreed upon payment plan.
Choosing the Right Option
Before you select and agree to any form of commercial asset financing agreement, it’s important to understand your options and the agreements you might be signing on to. It’s always best to seek the advice of an expert, whether a financial advisor or even an insurance agent.
By partnering with an insurance agent, it’ll simplify the process of acquiring the right commercial asset finance. Most insurance agents are well-versed in guiding businesses towards determining the most appropriate type of asset finance that best suits their needs while providing them with resources to obtain the best insurance coverage to protect their high-value assets.
Let Morgan Insurance Brokers Help
If you’re keen on leveraging the power of commercial asset finance to grow your business, reach out to our team of experienced insurance brokers. We’ll guide you through the nitty gritty details of commercial asset finance to help you meet your current and future business goals.
How Income Protection Insurance Can Help You Maintain Your Income While Recovering
Income protection insurance is the financial lifeline you don’t realise you need until the unexpected happens.
It’s a common misconception that income protection insurance is only for the wealthy. In reality, the opposite is true. If you rely on your income to cover mortgage repayments, household expenses, and daily living costs, have you considered how you’d manage financially if that income suddenly stopped?
Whether it's due to illness or injury, income protection insurance helps ensure you can keep up with your financial commitments while you focus on recovery.
At Morgan Insurance Brokers, our experienced team of brokers can help you find the right cover to suit your needs. Reach out today to protect your income and your peace of mind.
The Basics of Income Protection Insurance
Whether you have income protection insurance through your super, an employer, or private insurer, it’s important to understand exactly how the coverage works. Key considerations include:
Waiting Period
The waiting period for the insurance claim represents the minimum amount of time you need to be unable to work before you can begin receiving benefit payments. In most cases, this ranges from two weeks to three months.
With some policies, you may be able to customise your waiting period. Generally, the longer the waiting period, the more affordable the policy. When deciding on a waiting period, it’s important to consider how much sick leave, annual leave, and emergency savings you currently have available.
Benefit Period
The benefit period refers to how long the monthly payments will continue if you remain unable to work due to illness or injury. Most income protection policies offer benefit periods ranging up to five years or to a specific age.
It is important to note that while a longer benefit period typically results in a more expensive policy, it also provides a longer and greater level of protection during your time away from work.
Type of Premiums
The type of premiums you choose, whether stepped or level also impacts the cost of your policy. Stepped premiums are generally recalculated at each renewal, meaning the cost may increase as you age due to a higher likelihood of claiming.
In contrast, level premiums are typically more expensive at the start of your policy. However, the cost does not increase based on your age, so premium rises tend to happen more slowly over time.
Payout Amount
In Australia, most income protection insurance policies offer up to 75% of pre-tax income. Some may also include an additional 10–15% to cover superannuation contributions.
Maximum monthly payments vary by provider, with some specialised policies offering up to $30,000 per month.
Benefits of Income Protection Insurance While Recovering
Designed to replace a portion of your income, income protection insurance ensures you continue receiving a steady monthly payment to support your lifestyle while recovering from an injury or illness. Key benefits of income protection insurance include:
A continuous stream of income even if you can’t work
While you may have savings, a prolonged period of not being able to work can quickly deplete them. During such times, income protection insurance provides you with adequate financial support, helping you manage ongoing expenses without having to exhaust your existing savings.
Income protection protection insurance can be customised
Depending on your provider, your policy can be tailored to suit your individual needs and preferences. This includes adjusting elements such as the waiting period, benefit period, and premium structure. For example, you could choose a longer benefit period with lower monthly premiums, or opt for a shorter waiting period with higher premiums.
Income protection insurance may be tax deductible
In many cases, the premiums you pay for income protection insurance are tax-deductible, making it a more cost-effective option. This generally applies when the policy is held outside of your superannuation. It is important to confirm your eligibility with the ATO or a qualified tax professional. Alternatively, by working with a broker, you can receive tailored advice to help guide your decision.
Get Income Protection Insurance While You're Young
A core component of any financial plan, income protection insurance helps safeguard you if the worst were to happen. The team of brokers at Morgan Insurance Brokers can guide you in securing the best policy for your needs, offering much needed peace of mind during challenging times.
If you need help obtaining income protection insurance or are unsure about specific details, contact us to speak with one of our experienced brokers.
What Does Income Protection Insurance Cover and How Does It Work?
Have you ever thought about what might happen to you or your dependents if you were suddenly unable to work? How would you afford monthly bills, mortgage payments, and other miscellaneous expenses that support your livelihood?
If this feels like a stressor for you, it might be time to start considering income protection insurance, especially if you work within a high-risk occupation.
It’s important to find out how it works, when you need it, and the factors you need to consider when buying it.
What Income Protection Insurance Covers
In essence, income protection insurance is designed to replace a portion of your income if you’re unable to work due to an unexpected illness or injury. Income protection insurance then provides monthly payments (for a specified period of time), typically up to 70% of your pre-taxable income to help you meet expenses while you recover.
However, it’s important to be mindful that each income protection insurance policy is subject to your provider’s specified terms and conditions. Moreover, keep in mind that the higher the cover, the more you’ll end up paying in monthly premiums. This makes it critical that you calculate exactly how much coverage you’ll need in the foreseeable future in the event of the worst happening.
For instance, if your monthly income is $15,000 but you only require less than half of that to live comfortably for a period of time, then the amount you’ll pay in premiums will be much lower. This allows you to better manage your present monthly expense while accounting for the additional but necessary cost of income protection insurance.
Key aspects of income protection insurance typically include:
- Monthly benefit payments, designed to replace a specified amount of your lost income.
- Benefit period, which varies depending on the policy you undertake. Typically, the maximum length you receive payments for can be anywhere from one year up till a specific age, like 65.
- Waiting period, which represents the minimum amount of time you need to wait after being unable to work to start receiving benefit payments.
- Partial disability benefits (only offered by some insurers) for those who are still able to work part-time but at a reduced capacity.
- Return to work support (only offered by some insurers) such as rehabilitation or vocational training.
- Offsetting clauses that may reduce the benefit you receive if you receive income from other sources (workers’ compensation, other income protection policies, etc) during the specified benefit period.
- Superannuation contributions, in which some policies may include a component that replaces the superannuation contributions you would have made if you were able to work full-time.
- Choice of benefit period, wherein you can decide how long you would like to receive benefit payments for.
Each income protection policy has its own definition of partial or total disability that must be met before a claim can be made. We understand that the options available to you are wide and varied.
If you find this overwhelming, don’t hesitate to contact us for more information. As experienced brokers, we’ll guide you in partnering with the right provider to suit your exact needs.
Do You Need Income Protection Insurance?
This very much depends on your individual circumstances and current financial situation.
Here are several questions you can ask yourself when deciding whether income protection insurance is right for you.
- Do I have savings or other financial safety nets to cover my expenses?
- What are my monthly living costs (e.g. rent/mortgage, utilities, groceries, debts)?
- Do I have dependents who rely on my income?
- Is this a short-term safety net, or do I need long-term coverage?
- Is my job considered high-risk or physically demanding?
- Does my employer provide any income protection or disability cover?
If you are still unsure, seek advice from a qualified professional who can help you determine the right level of coverage and policy options for your needs.
Get Insured Today– Before Life Happens
A critical but often overlooked component of any financial plan, income protection insurance is a smart investment, especially while you’re still young. With lower monthly premiums, you’ll be able to safeguard your financial future if the worst were to happen.
The team at Morgan Insurance Brokers can help you secure the best income protection policy for your needs, providing valuable peace of mind, even during the most challenging circumstances. We’ll help you compare different policies from various providers to find the best option for your needs and budget.
If you need assistance obtaining income protection insurance or have questions about the details, contact us to speak with one of our experienced brokers.
How Commercial Asset Finance Can Help Your Business Stay Competitive
Need new assets to expand your business but don’t want to incur major upfront costs? Commercial asset finance could be the best solution for your business. As a business owner, you’ve likely faced the challenge of wanting to expand your business–whether that means hiring more employees, moving offices, diversifying your product/service offerings, or most importantly, accessing the latest technology. However, finding the funds to do so can be challenging.
Rather than taking out a traditional loan to finance new equipment outright, commercial asset finance can be a more economical, flexible alternative. This article will explore how commercial asset finance can help your business remain competitive.
Commercial Asset Finance – Explained
In essence, commercial asset finance is designed to help businesses obtain pricey assets: computers, printers, office equipment, vehicles, and more, without having to pay for the full cost of it upfront. Instead, the costs are spread across equal loan payments over a fixed period of time. This enables businesses to keep costs at a minimum, allowing them to invest in other, more pressing growth opportunities.
There are three main types of commercial asset finance:
- Leases are the most common type of asset financing utilised by businesses. It allows businesses to use an asset for a fixed period of time with payments made regularly. At the end of the lease agreement, the business may have the option to purchase the asset at its current value.
- A hire purchase is similar to a lease but it comes with the intention of owning the asset at the end of the payment term.
- A chattel mortgage is when the business is keen on owning the equipment from the get-go. The borrower takes ownership of the asset from the very beginning, but uses it as collateral for a loan.
Benefits of Commercial Asset Finance
Curious about how asset financing can help your business grow? Benefits include:
Capital Preservation
Without significantly depleting your working capital, you’ll be able to acquire the necessary tools needed for growth. By strategically spreading payments over time, asset financing helps businesses maintain a healthy cash flow which is crucial for immediate investments. In the long run, this helps maintain a sustainable business model.
Tax Benefits
According to Commonwealth Bank Australia, an instant asset write-off deduction may be available– if certain eligibility requirements are met. For example, for chattel mortgages and hire purchases, deductions may be available for costs associated with depreciation, interest rates, and operating expenses. Likewise, businesses may also be able to claim GST input tax credits upfront.
Moreover, in terms of leases– loan payments may be tax-deductible. Some businesses may even be entitled to claim GST input ax credits in their Business Activity Statement.
For more information on this, it’s important to enlist the help of a taxation expert or an insurance broker. An experienced broker can help with providing all the necessary policy documentation and payment breakdowns so your tax advisor can claim deductions accordingly.
Improved Flexibility
There are a range of commercial asset financing options available for businesses to choose from. Each option is designed to cater to the distinct needs of a business. This allows them to choose the option that best suits their immediate and future needs based on their financial goals, operational efficiency, and ideal growth trajectory.
Need help determining the right type of commercial asset financing for your business? An insurance broker can help tailor financial solutions to meet the specific needs of each business through partnerships with a range of providers, securing better rates and terms.
More Risk Averse
Businesses are able to assess and mitigate any potential losses associated with the acquiring and ownership of assets. This is because business success isn’t always guaranteed.
So, if there’s ever the likelihood of defaulting on the asset finance agreement, the business will only lose asset ownership and not necessarily be liable to any other major risks. While unfortunate, it’s a preferred option.
Access to Latest Technology
To always be one step ahead of the curve, businesses need access to the latest technology. Commercial asset based financing enables businesses to gain access to the best equipment available in the market without needing to worry about budget limitations.
Morgan Insurance Brokers – Your Commercial Asset Financing Partners
If you’re considering commercial asset financing to grow your business, do not hesitate to contact Morgan Insurance Brokers for access to the best asset financing options. With our industry connections, our team of experts will help you secure a better rate and term.
Contact us today!
