Disability, Critical Illness and Income Protection Smsf are often thought of as ‘safety net’ products. When you think about it, though, it makes sense. After all, what would you do if you were suddenly unable to work? How would your family cope if your income was cut off? The simple answer is that they wouldn’t cope. But with an income protection plan from SMI, they will have a safety net of their own that will ensure that everything keeps going for them.
It’s hard not to worry about how you’ll provide for your family when something unexpected happens. That’s why it’s so really important to have an Income Protection Smsf plan in place if an illness or accident prevents you from working. Income protection is often described as your safety net, providing replacement income. Typically, between 40-65% of your after-tax salary. Having a safety net in place means that if you are hit with a potentially debilitating condition. You can still maintain your current lifestyle without worrying about additional expenses related to your health or treatment.
Peace Of Mind
Income Protection Smsf cover isn’t just about providing a top-up income for when you’re injured or sick. It can also offer peace of mind that you have both a lump sum and a monthly income in place if something unexpected happens, keeping your finances secure and ensuring you don’t have to rely on other people. Trauma insurance policy includes full life cover as standard. While our income protection will pay out a tax-free lump sum to help you manage if something unexpected happens.
Choose Your Cover
A trauma insurance quote will allow you to choose which medical benefit you want. The three most common cover benefits are: $30,000, $40,000 and $50,000. Most professionals recommend getting a policy with at least a $40,000 cover benefit. This way, you’ll have enough money in your account to pay for your monthly expenses until your business gets back on its feet. Additionally, make sure your monthly premium is less than one per cent of that total—this will help you save some cash if disaster strikes.
Guaranteed Continued Cover
Smsf Income Protection is designed to assist you safeguard your income if you are incapacitated to work owing to sickness or injury. However, there are instances where people can find themselves unable to work because of an illness or injury. But their income protection insurance doesn’t cover them. That’s why it’s so vital for people who have income protection insurance policies to read their policy documents thoroughly before taking out a policy. If they don’t, they may face financial hardship in times of need—and that’s exactly what the trauma insurance quote was designed for.
Some income protection policies have a one-off level payment if you’re unable to work for a specified period of time. But don’t continue paying out if you’re still unable to work once that time has elapsed. Income protection policies with guaranteed continued cover payout as long as you remain unable to work. That means your policy will be paid up until your retirement age, so there’s no need for other forms of income protection such as an annuity or income drawdown in old age. This is very useful if you plan on working beyond retirement age and want financial security in case of sickness or injury preventing you from doing so.
You’re Payment, Your Choice
With income protection insurance, you can choose what happens when you can’t work due to a serious illness or injury. Income protection insurance is divided into two categories:
Trauma –
With trauma, you can decide how much and for how long your payments will be. The benefit amount varies depending on the type of policy you have and how much extra coverage you want.
Smsf –
With a single-member special function, which is also known as an SMSF, your funds go into a trust that can be used for whatever purpose you decide. Depending on your policy terms, each month’s payment may either continue until age 65 or stop after five years, whichever comes first.