Kawasaki Sportsbike Riders Club - Australia - Online Forum

Hi,thinkin of chasing up accident/sickness insurance!

does anyone have, or no of any companys/policys that are a good deal?

i would like to have both sickness and accident together...

anyhow any info be helpful, thanks

I'm no expert, but are you referring to income protection?

Income protection insurance will cover a percentage of your income for a period of time for certain situations, you'd need to check each vendor.

Company Worker's Compensation insurances (I'm pretty sure every employer has to have this(?) ) will cover you for accidents to or from work (here I am experienced )

I'm not aware of anything (except health care) that specifically covers 'sickness' though, unless it's somehow workplace related (and then it's worker's comp as above).

My super has this kind of policy, generally for accidents (tested; darmn BMX), not sure about sickness though. I know in UK my life insurance had critical illness cover, but wouldn't cover your pay if you had two weeks off with the flu.

I have this insurance along with workers comp and have done so for many years..... however.....This type of policy is not something you can just grab off the shelf and be satisfied with. There are many exclusions and conditions that you need to research before entering into this type of insurance......... Are you self employed ? How are you employed ? eg through a company, partnership or sole trader etc ?

You can only cover a maximum of 75% of your (declared) income........... so if you have a good accountant you may not receive a substantial benefit in the event of a claim. The insurance company will take your premium with no questions asked, but in the event of a claim you will need to provide proof of your income by way of tax returns and then you can only claim up to 75% of that amount...........

Like anything to do with insurance READ THE FINE PRINT the exclusions may not be worth the policy premium in the event of a claim.....

I would reccomend you talk to an insurance broker to explain the ins and outs of this type of policy as every persons circumstances are different. On the surface this type of policy seems good as it covers you 24 hours a day 7 days a week. Whereas Workers Comp only covers you at, or to and from work. But check out the details first and get a second opinion.............

[READ THE FINE PRINT]
Hiya Shithy 5, I read the fine print on your avatar and noticed her premiums are pushed to hilt.

I'm going to start with a "cover my arse" statement - anything written below is to be considered "general advice". It does not take into account any of your personal circumstances, goals or objectives.

That's good advice from smithy5 - READ THE FINE PRINT. You MAY find that riding a motorbike is an exclusion or if it's available it may carry a loading.

There are 2 types of policy (broadly speaking) -
Income Protection (IP) - this policy is held outside your super fund. Your premium's are tac deductible and should you claim your income from the policy is taxable. This type of policy usually has a monthly premium but you may specify that you want to pay if quarterly / 6 monthly or annually. You can specify how long you want the cover for up to age 65 (usually).

Temporary Salary Continuance (TSC) - this policy is held within your superannuation. The premium is paid monthly from your super fund and they claim the tax deduction on the premium. TSC can be specified to provide cover for 2 years or to age 65 (check your super fund). The beauty of structuring your policy like this is that as the premium comes out of your super it's not directly affecting your day to day cashflow. This sounds fantastic BUT it does reduce your super at the same time (assuming you have life cover, total and permanent disability cover and TSC within your super). The way around this is the make monthly contributions to your super fund. This is also assisted by any government co-contribution you may be eligible to receive.

Either way the maximum you can claim is 75% of your taxable income. If your accountant has structured your affairs to reduce your taxable income you may find that your premium gives you a policy which does not provide appropriate income. This applies if you are self employed. If you are a PAYG wage earner then you have some options - check to see if your employer has an Employer Super which provides Life, TPD and TSC. Some employers pay these premiums for their staff or have negotiated a special rate with the fund manager. If this is not available to you then you can contact your super fund manager direct to set up TSC.

Be aware - there are different waiting times available on these types of policy. From 2 weeks to 24 months. The longer the waiting period the lower the premium however this does defeat the need for the income in the first place. If you choose a 4 week waiting period you will receive payment 8 weeks after your claim date - this is because the policy is paid in arrears.

Be aware - as stated before you can't buy an off the shelf policy. More than likely you will need an insurance broker or financial planner who will provide you with a statement of advice. This will ensure that the policy you purchase is appropriate to you and your needs. Talk to an accountant about possible taxation issues if you are self employed.

You will more than likely be required to undergo a physical with your GP along with blood tests and possibly further pathology tests. It will take time to process your application - 6-8 weeks is normal, longer if further tests are required. You will also be required to undergo a full disclosure personal statement which will ask you a large number of health related questions - some of them extremely personal. You have a legal obligation to declare any and all health issues.

After all that you MAY have a IP/TSC policy. The insurer will then do their very best to NOT pay you. All claims will be investigated thoroughly - if they find ANY reason to not pay they will. If they pay and find the claim invalid they will seek reimbursement of any and all payments.

There are a huge number of variations on these policies - I've only covered the absolute basics.

Good luck and remember - READ THE FINE PRINT.

As WayneMorgan said, and its all in what u pay and what’s exactly in the policy!

I have been on income pro' for years until recently, yes shite happens and happens hard.

That’s when you find out how under insured you are, but. you have to look at your lifestyle and how much at risk you are, same with what you do for work.

Best thing to do is talk to the bank insurers as these guys know risk, a few brokers and study up on it. I found you can get 3 in one packages with super and disability, but know what you are getting into. As I found out and hindsight sucks, I didn’t read it or research. Why would ya, you are healthy and bullet proof when you sign up and never think or feel it is worth it ....

Like said above, you are covered at work and in your vehicle, that leaves the other "third" of your life and depending on your risky behaviours, i.e. motorcycling, self employed, managing director, owner of a business where you are NOT covered by workcare unless you are an employee, skydiving, running with the bulls, living with a woman scorned etc it is definitely a consideration to get it.

Oh, last thing, cheaper for longer claim initiation, like 1 month claim against 3month payment upon claim can reduce your premium big time.

Anyway, pm me if you want to know what happens when you need to claim and the reality of continuity of a claim.

hehe I dont expect you will...

cheers

Hey guys thanks for info its great, will definately look into it more, cheers....