83% of Australians say they have insurance for their car.
Only 31% choose to insure their ability to earn an income.
Which is more important? What choice are you making?
What would be the financial impact on your family if you were injured and needed to take an extended period off work? Income protection insurance, also known as salary continuance, is one way to financially support you in managing your expenses if you are unable to work for a certain period of time.
Each income protection policy has its own definition of disability and range of benefits. Income protection can generally offer cover for up to 75% of your gross wages up to the age of 65.
When opting for income protection, consider what other types of personal insurance you may need as well, such as life cover and total and permanent disability cover to secure your family’s financial future.
- Income protection premiums are generally tax deductible.
- Take into account your leave balances (e.g. annual, sick and long service leave) and access to emergency cash when choosing your time period.
Case study: Bob cuts his premium
Bob wanted additional income protection insurance so he paid more money through his super fund to get the maximum cover. After realising he had 10 weeks of annual and sick leave up his sleeve, he opted for a 3-month waiting period to reduce his premium. If he ever needs to make a claim, he can cover the first 3 months with his saved leave payments.
If you would like to find out more about how to protect your income, please contact Tiffany on (03) 9740 7388 to arrange a meeting.