What is Income Protection?

If you’re temporarily unable to work because of illness or injury, Income Protection insurance pays you a monthly amount, generally up to 75% of your salary.

The money can help with your household expenses such as mortgage or rent, groceries and bills.

Your income is what fuels your life today – and all of your plans for tomorrow!

How much can I insure?

You can insure up to 75% – or in some cases 80% – of your pre-tax salary plus super contribution.

Is the premium for Income Protection is tax deductible?

YES. Premiums for Income Protection are tax deductible, which means your annual tax bill is reduced.

How much does it cost?

If you can afford to buy a cup of coffee every day, you can afford to protect your income.**

** This is based on a 35 year old male, computer programmer, non-smoking, living in WA, earning $75,000.

What do you need to think about when deciding which plan is appropriate?

Benefit period- When you are setting up an Income Protection plan you will want to consider how long your claim will be paid for- this is called the benefit period. Typical periods are 2 years; 5 years; to the age 60; or 65 years.

Waiting period- You will also need to consider the period of time that you are prepared to wait till your claim starts to be paid. Typical periods are 14 days; 30 days; 60 days; 90 days; 1 year or 2 years

Agreed value contract - The monthly benefit is the amount accepted at application, regardless of whether your income has since risen or fallen.

Indemnity contract - The monthly benefit will be assessed at claim time and is generally based on your average income over the previous twelve months, prior to claim.