Protecting your income in the event of short or long term disability.

As an owner of a business 75% of your pre tax income (i.e. gross income less eligible business expenses) can be covered by income protection insurance. Eligible business expenses can be purchased as an additional cover, which can provide protection for up to twelve months.

However, life insurance advisers and insurance companies alike have difficulty in coming to grips with the remuneration arrangements of the Management Rights Industry with the result that in many cases the body corporate caretaking component has been ignored when assessing the insurable income on the basis it was ongoing income. In many cases the caretaking income can be a significant part of the package and if deducted from the total could result in a greatly reduced benefit.

This may be acceptable if the disability is short term, however consider the implications of a long term disability that could influence your body corporate to instruct you to sell the management rights.

After selling, you are faced with clearing debts, purchasing alternative accommodation and living on 75% of a significantly reduced income stream for the rest of your disability.

We have addressed these problems by developing a package that caters for your short term needs and should you experience long term disability and have to sell your business you will receive benefits based on 75% of an agreed pre disability income which includes your caretaking income.

You, no doubt, have public liability, professional indemnity, business, house and vehicle insurance.

Can you afford not to insure your income?

If you wish to speak with an advisor, please email your preferred contact details