Income Protection

Income Protection is arguably the most important of all insurances.  After all, where would you be without your income?  Your income is the single most important asset you have.   It enables you to maintain your lifestyle, reduce your debts and provide for retirement.

Income Protection provides you with monthly payments to replace up to 75% of your gross income.  If you are self employed this would be 75% of your income generated by the business, less your share of expenses.

Policy features to consider when looking at Income Protection are the following:

• Waiting period – This is the length of time from when you cease work to when your monthly payments are commenced.  Waiting periods can be 14 days, 30 days, 60 days, 90 days, 1 year or 2 years.  A longer waiting period can significantly reduce your premiums.
• Benefit period – This is the length of time you can continue to receive your monthly benefit.  This can vary from 2 years up to age 70 with some Insurers.
• A variety of optional benefits such as increasing claim option, accident option, rehabilitation benefit, specific injuries benefit as well as many more.

Income Protection is generally 100% tax deductible, thereby reducing the after tax cost of the premium, in some cases quite substantially.

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The taxation information is provided as a guide only and may not be relied upon.  If in doubt, you should seek independent tax advice from a qualified tax adviser.