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Hi
everyone and welcome once again.
It is nearly eight years since I
did my first Money Ma$ters
article for What’s On &
Expat though ‘Into the
millenium with Leeds United’
seems like only yesterday. My,
how time passes quickly when you
are enjoying yourself!! I’ve
probably written over 100
masterpieces in that time and we
have looked at education fee
plans, retirement planning,
Personal Portfolio Bonds, life
assurance, alternative
investments, trusts and offshore
banking.
Today we are taking a look at Global Income protection and the
following will help you
understand why all of us should
seriously consider international
income protection. A Global
Income Protection plan allows
you to insure your salary so
that if you suffer an illness or
injury that results in you
having to take long term sick
leave, you will have a
replacement income to help you
maintain your standard of
living.
Whether you are moving internationally from contract to contract,
traveling for business or simply
returning to visit relatives in
your home country, you are 26
times more likely to be
incapacitated and off work for
more than six months, than to
die before the age of 65. In
2003, 95,821 people between 25
to 64 years old died in the UK.
In the same year, more than 1.6
million people between 25 to 64
years had been unable to work
for more than two years. UK
statistics show that you are 26
times more likely to be
incapacitated and off work for
more than six months, than to
die before the age of 65.
(Source: ONS Abstract of
Statistics 2003 Edition and IAD
Information centre (DWP) 5
percent sample.)
The worry of maintaining even a basic existence for yourself and your
family will be the last thing
you’ll want to deal with when
trying to cope with a serious
illness or injury. Global Income
Protection offers you total
peace of mind wherever you are
in the world at affordable
premiums. Key features of income
protection:
• Insure up to 75 percent of
your gross annual salary up
to a maximum of
USD144,000 annual com- |
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pound interest of 2 percent
added to benefit payments
every 12 months
• Waiver of premium whilst
you claim with cover
reinstated on return to work
• Benefit paid until return to
work, death or on reaching
age 65
• Choice of deferment period
with benefit starting after
either three or six months
• Cover available in Sterling,
US dollars and euros
• Available to employed and
self-employed expatriates
An example of what you might expect: A 30-year old insures
USD45,000 benefit (being 75
percent of his USD60,000 salary)
and does so for 34 years until
retirement. At today’s premiums,
he would expect to pay USD63 per
month (based on a six month
deferment), that’s not even
USD16 per week and just 1.3
percent of his gross monthly
salary. If he became too ill to
work and claimed for a two-year
period, the insurer would
replace his salary over those
two years to the value of
USD90,900 and he would not pay
his premiums during this time.
During the time that his income
protection plan remains in
force, he will have paid
USD52,248 total in premiums.
That’s less than one year’s
salary for total peace of mind
over 34 years. To put it another
way, even paying his premiums
over 34 years won’t amount to
the valuable benefit he receives
in just his two years off sick.
Don’t leave it to chance. It’s
true that you never know how
worthwhile having insurance is
until you need it. But knowing
the statistics, are you prepared
to take that chance?
Figures do not include rises in premiums and/or sum insured. Keep
smiling.
Michael Denison MLIA
Senior Consultant
Sinclair James International
Corporation Ltd
www.sinclairjames.com
Tel. + (632) 889-6145
Fax + (632) 889-6144
6144 Suite 1706, 88
Corporate Centre Sedeno
Street, Salcedo Village
Makati City, Philippines |
