The new financial year is a natural checkpoint. You’re likely doing your tax return, or about to, which means income protection insurance deductions are front of mind in a way they aren’t for the rest …
Income Protection Insurance
Most of us insure our homes and our cars but too many Australians fail to protect their most important day-to-day asset – their income.
If you were unable to work for a period of time due to sickness or injury, what would be the repercussions on your family, your lifestyle, your financial security, or your business?
Do I need Income Protection Insurance?
Whether you’re single, married, with children or without, employed or run a business – failure to insure your income, or insuring it incorrectly, can have dire results. In the wake of an accident or unforeseen event, Income Protection Insurance can be the difference between an unmitigated disaster and a transient, unfortunate event.
What can Income Protection Insurance cover?
Income Protection Insurance protects your ability to earn; typically, by paying a monthly benefit for up to an agreed amount (generally 75% of your income).
Other things to consider
The premiums paid for Income Protection Insurance are usually tax deductable; however, you will need to declare any payments on your taxes.
You may also be able to obtain Salary Continuance Insurance through your superannuation fund. This provides some protection if you are unable to work for a period of time due to illness, injury or accident. However, Salary Continuance Insurance is not the same thing as Income Protection Insurance, which is more comprehensive and offers better benefits.