Protect your income
Income Protection can help you pay your rent or mortgage, cover medical expenses and bills and continue to fund your lifestyle if you can’t work because you become sick or injured. If you’re not sure you need Income Protection insurance, ask yourself how long you could continue to meet your day-to-day living expenses if you suddenly were unable to work for a lengthy period of time?
Trauma Insurance
Another insurance worth noting is Trauma insurance which provides a lump sum payment when you suffer a major medical illness. Trauma insurance can help ease the financial stress of major expenses to give you financial peace of mind so you can focus on what’s truly important – your recovery.
Private Health
There are many good reasons why it is essential to take private health insurance especially while you’re young and healthy. The first is that it can save you money. Private health is designed to encourage people to take out hospital cover early in their life and keep it. Because of this, health insurers must charge extra to people who join a hospital policy after the age of 31.
The extra charge is 2% on top of the normal premium for each year you are over 30 years of age. For example:
• If you don’t take out hospital insurance until you are 40 you’ll pay an extra 20%.
• If you wait until you are 50 it’s an extra 40%.
Avoid the surcharge
The Medicare Levy Surcharge (MLS) occurs if you don’t have private hospital cover. This means for most people who are single with a taxable income over $90,000 ($180,000 for couples, families and single parents) the government will charge an extra 1% in tax.
The MLS will increase to 1.25% if you earn over $105,000 ($210,000 for couples, families and single parents) and 1.5% if you earn over $140,000 ($280,000 for couples, families and single parents).
While taking out insurance is a personal choice, you must remember that nothing in life is predictable and you should look at how you can protect yourself and your family in those uncertain times. For the best advice about which insurance is best for your circumstances, please talk to your Altitude Adviser.
Altitude Financial Planning is a Corporate Authorised Representative of Altitude Financial Advisers Pty Ltd
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The information contained on this website is general in nature and does not take into account your personal circumstances, financial needs or objectives. Before acting on any information, you should consider the appropriateness of it and the relevant product having regard to your objectives, financial situation and needs. In particular, you should seek the appropriate financial advice and read the relevant Product Disclosure Document.