Investing & Money
piece written on the 17th September 2015 by  

Last week we investigated income protection and this week I need to tell you about some of the new products that are available to you. As you know, I’ve been working with Momentum to create some education around critical illness cover and income protection, and although the education side is important it’s a bit pointless if I don’t now go through some of the products that are available to you.

Not too long ago I started to see people posting updates on Facebook and Twitter saying that mountain biking is the new golf. It’s quite amusing but it’s actually rather true. Everyone seems to be jumping on a mountain bike and finding their way up the mountain to look at the beautiful views. I even own a mountain bike and have ridden to the top of Tokai Forest and in doing so I saw hundreds of other cyclists! The reason I’m telling you this is because when it comes to disability people are quick to think that disability is only for severe cases, but temporary injuries such as falling off your bike and being out of work whilst you recover would also fall under the cover – I bet you didn’t know that.

Momentum Myriad’s success in this space and how they’ve established themselves as the market leader boils down to the fact that they take a “building block” approach to cover rather than simply using a “one size fits all” approach. In a day and age where there are so many things going on, the “one size fits all” approach simply doesn’t fit the picture. This has brought on a number of great new products from their stable and I’m going to talk you through 4 of them today as best as I can, but please do contact Momentum for finer details.

#1 Income Enhancer Benefit

If you have this cover in place and submit a valid claim, this benefit provides you with 50% more cover for the first few months. This is in place as it will assist you with things such as hiring an au pair to funding any medical expenses or lifestyle adjustments that might need to be made whilst you recover.

#2 Complete Family Protector Benefit

I like this benefit because it thinks a bit further than the obvious. When you experience a tragedy in the family such as a death or critical illness, it’s often the breadwinner who needs to take time off work to give support. The benefit results in a lump sum pay-out to three monthly claim amount payments under the income protection benefit to which it is linked. Should the situation involve hospitalisation, the pay-out is 50% of the monthly claim of the linked benefit and in the unfortunate event of death, the benefit provides a pay-out that equals 3 months’ income.

#3 Complete Functional Protector Benefit

Momentum Myriad currently offers a Functional Protector Benefit and the Complete Functional Protector Benefit is an enhancement of this. In the case where the insured life becomes permanently impaired, the monthly pay-out benefit kicks in. The concept of these benefits aren’t to replace the individual’s income but to rather supplement it in order to cover ongoing expenses such as hiring a nurse or covering the cost of frail care. The most intriguing aspect of this benefit is that it provides “whole of life” which means that once an insured life qualifies for a pay-out, the monthly payments are made for the rest of his/her life.

#4 Annual Income Commutation Option

With new changes to tax, Momentum Myriad created this benefit for permanently disabled people to commute their monthly income disability pay-out into an annual lump sum payment. This gives protected party’s the opportunity to make provision for more pay-out flexibility. From the second claim anniversary onwards, you’re able to commute 25, 50, 75 and 100 percent of the monthly income protection payments to a lump sum.

These are 4 fantastic benefits to consider and next week we’re going to look at another 4 income protection benefits including the Business Protector which is for self employed people. If you have any questions please feel free to leave a comment below or contact Momentum accordingly.