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accounting exemption

Product Class Advice – Premium Options (Part 7)

Many products will offer you a choice of two premium options :-

  1. Stepped premium varies each year according to your age, sum insured and the policy fee.
  2. Level premium will remain the same as when you took out the policy, except when the policy fee is increased by indexation or the sum insured is altered or if level premium rates are subsequently revised. The level premium option generally expires at a specified age. Level premiums are initially higher than stepped for the same sum insured for the first few years but become significantly cheaper after the policy has been in force for several years.

Please note this is an illustration only and does not reflect your personal circumstances.

Should you wish to obtain further information about our RG146 face-to-face course, or our solution for accountants once the accountant exemption expires or you wish to become an authorised representative please email info@fwgs.net.au or register your interest on our website.

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accounting exemption

Product Class Advice – Business Expenses Insurance (Part 6)

Business expenses insurance offers similar benefits to income protection contracts, but is only available to certain self-employed persons who wish to cover their non-income producing business expenses should they be unable to work because of illness or injury.

The wide range of additional benefits offered in income protection products are not usually offered with business expenses insurance. Benefits are usually paid on a monthly basis and can reimburse up to 100% of approved business expenses. The benefits are generally limited to 12 months.

The premiums payable on income protection and business expenses policies are tax deductible, however the income payments received will be taxed at your marginal tax rate.

Should you wish to obtain further information about our RG146 face-to-face course, or our solution for accountants once the accountant exemption expires or you wish to become an authorised representative please email info@fwgs.net.au or register your interest on our website.

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accounting exemption

Product Class Advice – Income Protection (Part 5)

This form of insurance provides you with a monthly income should you be unable to work due to sickness or injury. The benefit paid can be used for any purpose and thus can be used for living expenses, home loan repayments, regular investment and other costs. This enables you and your family’s lifestyle to be maintained during the disablement period.

It is particularly important to those who have geared investments in which the loan payments are reliant on your income.

Income protection insurance provides a regular income up to a pre-determined benefit period of several years or up to a specified age. The maximum benefit paid is usually limited to a percentage of either your current income or the income prior to your disablement. Indemnity contracts offer payments whilst on claim of an amount equal to a fixed percentage (usually 80%) of pre-disability income up to the amount insured.

Alternatively, an Agreed Value product guarantees payment of the sum insured irrespective of the actual pre-disability income. This type of policy is more expensive but provides certainty when obtaining financial information may be very difficult.

The premiums payable on income protection and business expenses policies are tax deductible, however the income payments received will be taxed at your marginal tax rate.

Should you wish to obtain further information about our RG146 face-to-face course, or our solution for accountants once the accountant exemption expires or you wish to become an authorised representative please email info@fwgs.net.au or register your interest on our website.

If you found this article interesting, why not
  • SEND it to a friend from the sidebar
  • LEAVE A COMMENT by clicking on the icon at the top of the article
  • Send FEEDBACK directly to us at info@fwgs.net.au