If I’m self employed can I get Income Protection Insurance?
Most insurers offer self employed clients an income offering that would help if something happened to you and you were unable to work. When calculating your income protection needs you should consider the number of months you could survive without an income before selling off assets or making drastic lifestyle changes. If you are unsure speak with an adviser.
What if I have just started?
Some insurers will offer you a “newly self employed clause” which means in the event of a claim they will aggregate your income and pro-rata that against your projected income and that will be the monthly benefit.
When starting you can choose an Agreed Value option where your monthly benefit is agreed with you at the time of application and is based on your income at that time. Or Indemnity Value where your monthly benefit is calculated at the time of your claim and is based on your income at that time.
How much cover can you get?
Income protection cover is normally 75% of gross distributable income from the business before tax.
Is proof of income required to claim?
Depending on the insurer and the length of time you have been self employed most insurers will not ask for proof of income up to $3000 in monthly cover.
Are Income Protection Insurance premiums tax deductible?
As a self employed person you premiums will be tax deductible, and may also be covered in your superannuation, speak to an adviser that can look at the option that suit your needs.
If your business is dependent on your to operate you may also need to consider Business Interruption cover as well. This cover helps with keeping your business running without you
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