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Margie Said:

Have you got Income Protection?

We Answered:

Coverage varies, depending on the policy provisions. Be cautious to purchase DI coverage only from a true financial planner or an agent who specializes in such coverage. Disability income protection is extremely complex, and most insurance agents are relatively clueless about it.

Even if you are single, you still need income (possibly more of it) if you are sick or hurt.

Samantha Said:

Disability Insurance for Dentists?

We Answered:

You need to get the exact company names, or ask for the current AM Best ratings.

Additionally, when purchasing insurance, you have to consider eligibility and coverage. It's better to purchase enough insurance to meet your goal, if you can afford it. Also, depending on how healthy you are, those initial rates may or may not "stick".

All three of those companies are decent - but depending on which subsidiary companies you're talking about, you want one that's rated A- or better.

Maxine Said:

This may be legal but is it ethical?

We Answered:

Insurance fraud is illegal in the U.S., probably also in Australia.

Nathaniel Said:

Income protection. Can I rely on it? Which companies are best?

We Answered:

Go to an indpendent financial adviser who will have access to all insurance providers. Companies who specialise in this cover are Liverpool Victoria (LV), Friends Provident Scottish Provident, Scottish Equitable and UNUM. All of these companies are leading insurance providers with good claims history and so, there is no reason why a claim would not be met.

EDIT: In my 20 years experience in financial services I have never known a claim be declined. Most people whose claims are not met, will find if they read the policy details and small print, the condition they were suffering from was not covered under the plan. For example, with a critical illness policy, only certain major cancers are covered. It the policy holder then gets a less serious form of cancer they make a claim which is not met because that strain of the disease was not covered in any event. These cases tend to make the press with people moaning that they could not claim for a condition not listed! The important thing is to declare all your medical information on the application, read the brochure and ensure that what you want is offered under the plan. I have seen many people's lives made a lot easier because of successful claims but more lives ruined because they didn't bother with protection. Unfortunately, as suggested above, an ISA will give you little protection - particuarly as it linked to the stock market and could be worth nothing in your time of need.

Income Protection is idential to Permanent Income Protection (PHI)- they are the same contracts.

Kelly Said:

for lifetime protection which insurance plan is best - whole life, universal life or variable life?

We Answered:

From those three choices, I would pick whole life. It provides permanent protection and the premiums remain level to age 100.

If you pick universal life, your policy will eventually self-destruct. In universal life, the protection element is always annual renewable term insurance. In the beginning, majority of your premiums goes toward cash value. As times goes on, the cost of the insurance element goes up. So less and less of the premiums goes toward cash value, and more toward the insurance. Eventually, all your premiums is going toward insurance and your cash value may begin to decrease.

If you pick variable life, a portion of your premiums is invested in the stock market. If there is growth in the cash value, the death benefit grows too. If the cash value does poorly, you are guaranteed a minimum death benefit of whatever coverage you bought. This is the worst way to invest your money since life insurance policies have high expense ratios of 2-4% and possibly more. If mutual funds have an expense ratio of 1% and then you add life insurance expense ratio, you will be paying 3-5%. Lets say a mutual fund does an average rate of return of 10%. Deduct all these expenses, you are getting 5-7% on your savings.

But you seem to buying life insurance for the wrong reasons. Life insurance's only purpose is to protect your income. In the event of your death, life insurance will provide income to your family. If you are like many others who may have a mortgage to pay, have lots of debt, and have kids, then you should consider getting a 20-35 year term insurance. You should be able to afford the amount of coverage you need since premiums are very low compared to whole life, universal life and variable life. At the same time, you should be investing for the future. I would open an IRA account (try to get a Roth IRA) and invest on a monthly basis. If you invest $200/month and you get a 10% rate of return, in 20 years you can possibly have $153k. In 30 years, $456k. In 35 years, $765k.

Keeping savings and life insurance separate is the best plan and only term insurance contains no savings in it.

Veronica Said:

Insurance for employee not sub contractor in a trade.?

We Answered:

Your husband needs to speak to his boss and get clarification on exactly what type of insurance they want him to get. There is nothing anyone can tell you until you find out what type of insurance is being required and why.