October 31 – Trevor Thompson
Are you self employed? Is your Income protection insurance Agreed Value or indemnity. I’ll bet London to a brick that if you took it out more than a year ago you either didn’t know then or don’t remember! BUT ITS VERY IMPORTANT
Indemnity is the easiest cover for your adviser to get you. The insurance company takes your word for your income. Agreed value means you pay a little bit higher premium and I have to do some more work for you. I have to get a couple years of tax returns and PROVE your income to the insurance company.
SO WHAT, I hear you all say. Well your IP pays out 75% of pre disability earnings. If you don’t prove your income up front then you have to prove it at time of claim. SO if you are like most self employed people and want to pay as little tax as possible, you could be in for a nasty shock when the claims manager pays you a benefit much lower than you thought you were insured for!
Endorsed Agreed value gives you a guaranteed sum insured. Its crucial for self employed people!!!!!
By Trevor Thompson.
CFP DipFP
SENIOR PARTNER