We've got some important information about Income Protection Cover

There’s been a significant change in Agreed Value Income Protection that we want to tell you about.

Personal tax rates have changed since the original replacement ratio for Agreed Value was set at 55% in the 1990’s. This means, rather than calculating your benefit at a flat rate of 55%, we can now increase your benefit levels according to the following maximums:

Gross income New replacement ratio based on total gross income
$70,000 or less 62.5%
$70,001 - $99,999 60.0%
$100,000 plus 55.0%

Here’s an example:

·Assume earnings of $120,000 per annum (pa)
·Under the previous replacement ratio your Agreed Value would be $66,000 pa.
·Under the new replacement ratio your Agreed Value would increase to $72,749.95 pa.

This is calculated as follows:

$70,000 calculated at 62.5% = $43,750.00
$29,999 calculated at 60% = $17,999.40
$20,001 calculated at 55% = $11,000.55
Total Agreed Value = $72,749.95 pa

This would give you an increase of $6,749.95 pa to your total Agreed Value Benefit level.

Why would you want to increase the benefit level?

It’s important that your cover keeps pace with changes in tax laws and inflation. In the event of you being unable to work for an extended period, you would want the maximum benefit possible as quickly as possible – and we’re here to ensure you achieve that.
Remember that most insurance companies will also allow you to increase your cover by up to 10% per year if you receive a pay rise, with no underwriting (conditions apply). This allows your cover to keep pace with your life and future proof the benefit.

How do you increase your level of cover?

If your Income Protection policy was originally accepted on standard terms, it’ll be simple to increase your cover. You simply need to sign a ‘Declaration of Good Heath’ and a provide a copy of a recent payslip. We’ll do the rest!

If you’d like a free quote to increase the benefit level then simply reply back to us by email and we’ll get in contact with you. Alternatively you can contact us on 0508 THEMARSHALL (0508 843 627).


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