Income protection - a must have for all property investors

What would happen to your property investments if you lost your ability to earn an income? All your hard work to increase your personal wealth could potentially go to waste without adequate insurance.

However, if you had income protection insurance you could protect your property investments. The benefits from an income protection policy can provide up to 75% of your income should you suffer a sickness or accident.

Cover mortgage repayments with income protection

Many property investors in Australia are often financially stretched, with minimal lee-way to respond to a loss of income. But with the right policy, you can cover your mortgage repayments even if you cannot work. It means you can continue to grow property investment portfolio and your wealth despite any setbacks life may throw your way.

Reducing income protection insurance costs

Apart from comparing a number of policies, you can also increase your waiting period, or decrease your benefit period to potentially reduce the cost of your premiums. However, doing either of these depends on your particular situation and your personal needs.

Waiting period - this refers to the length of time you must wait until your benefit payments start being accrued to you. If you have enough savings you can extend your waiting period and reduce your premiums. A typical waiting period is 14 days, however this can be extended to 30, 60, 90, 180, 360, up to 720 days.

Benefit period - this is the maximum length of time a benefit can be paid to you. The benefit period starts when the waiting period ends, and is typically 2 years but can also be extended to 5 years or up to age 65. The longer your benefit period the higher your premiums will typically be.

Income protection insurance is tax deductible

One huge incentive for property investors in that income protection insurance is generally tax deductible. This means that if you purchase cover before the end of this financial year, you can claim a tax deduction. If purchased later, you will have to wait until the next financial year to make a claim.

Property investment protection

Income protection helps ensure your all your assets are protected, your income, your family, and your property investments. Contact xLife to find the right policy to protect your property today.

Exclusive Offer! Call xLife on 1300 135 205 today and
save up to 20% on your first year's income protection premium

April 2011