Income protection insurance is a form of life cover that is commonly misunderstood, when in fact it could be the most important type of insurance you buy.
Life insurance is commonly thought of as a lump sum payout after an unexpected death, but that is actually only one type of cover. There are actually four types of coverage on offer: income protection, trauma, total and permanent disability (TPD), and death.
Here’s How You Do It:
Step 1: Select your current age below.
Step 2: Once you answer a few questions, you will have the opportunity to compare quotes from up to 13 of Australia’s largest insurers. You may also be entitled to a free consultation.
To compare prices and find affordable life cover that meets your needs, visit LifeInsuranceComparison.com.au. You’ll be able to filter out the policy types you don’t want, and focus on the ones that you do. It’s a great way to get advice from an insurance expert without paying any hefty fees, because the service is free and there’s no obligation to buy.
As the end of the financial year approaches, it’s a good time to think about income protection insurance because it could save you hundreds at tax time. Income protection pays up to 75 percent of your income if you are unable to work. If purchased as a standalone policy your premiums could even be tax-deductible.
To find out how much you could save with income protection, start by doing a stocktake on the life insurance that you already have. Don’t forget to check your super, because you may find that you’ve been paying for life cover without realising it. If you have multiple super accounts, you might have multiple insurance policies as well.
However, having multiple insurance policies in super doesn’t mean that you have adequate coverage. The default life insurance in super often falls short of what the average Australian family needs. What’s more, having income protection insurance in your super could mean missing out on tax benefits.
Full tax deductions for income protection insurance through superannuation may only be on offer for self-employed individuals. It’s worth considering a separate income protection policy, because not only will it give you peace of mind, it could be entirely tax-deductible.
It is still possible to claim a tax deduction for income protection in the current financial year by purchasing an eligible policy upfront before June 30. When you pay for 12 months in advance, you should be able to claim the deduction.
Income protection insurance is not one-size-fits-all, and tax benefits may vary depending on your individual situation. Take advantage of the opportunity to talk with a life cover expert with LifeInsuranceComparison.com.au, so you can make an informed decision on your financial future.
Get Started Now:
Step 1: Select your state below.
Step 2: Once you go through a few questions, you will have the opportunity to compare the quotes in your area for an average savings of 20% a month.