Rural Income Protection
The key issue is protecting your business and your family’s future. Rural income insurance comes under a variety of names and cover types including:
- Key employer cover
- Farm consulting benefit
- Farmers disability insurance
- Rural income continuity
- Long-term income protection
- Personal income protection
In all cases, Premier Rural creates specific recommendations based on your individual business risk and requirements.
The key issues in the rural sector include protecting your livelihood, the family home, herd ownership goals and your farm succession plans. These crucial requirements are all based on your ability to work. If you suddenly lose this capability then your cash flow either dries up, or additional labour and staff costs eat into your profit, wipe out cash flows and affect your production.
Do you have the time to source herd management or consultants to carry the business through?
Could you meet your quota and pay the loan interest?
How long would your bank creditors give you?
It is critical the correct type of cover is put in place for owners, sharemilkers or key staff, with the best policy wordings and the cover owned by the correct business entity. This helps ensure you get the best GST rebate and have tax deductible premiums wherever possible.
It is also imperative farm business policies are not off-set against any ACC or personal insurance payments for the same event, therefore nullifying part of the claim and wasting premiums.
A few insurance companies have created specialised revenue/income protection policies to meet the needs for rural revenue/income insurance products. Some policies now provide cover with a three month seasonal boost included, for example, 100% cover/claim boost over key periods like lambing, calving or fruit harvest.
Value of future potential income you’re insuring (increasing at 5% pa)
|Your income today||Over 10 years||Over 20 years||Over 30 years|