As our income is generally seen as our biggest asset, it is extremely important that this asset is protected. Income Protection is designed to replace income in the event of illness or accident.
Income Protection enables you to insure a maximum of 75% of your regular personal exertion income (including salary sacrificed superannuation contributions) against sickness or injury that prevents you from carrying out your work. You need to be under the care of a Doctor.
There is a waiting period before benefits are paid under this type of cover. A short waiting period is generally designed to suit those who could be in financial difficulties very quickly if their income stream stops
Benefit payments continue until you are able to return to work subject to maximum benefit periods. Typical benefit periods range from 1 year, 2 years, 5 years, to age 55, to age 60, to age 65.
Generally, premiums for this form of cover are able to be claimed as a Tax Deduction, however any insurance proceeds paid are subject to income tax – you should consult your Accountant for formal confirmation.