Who will look after you if you cannot work due to injury or illness?
- Workers Compensation? This only covers you for work related injury & illness, but it’s fact that most serious injuries occur outside the workplace
- Employee Sick Leave? Normally only lasts for a few weeks & once it’s used it’s gone forever
- Social Security? A disability pension will pay you a maximum $944.30 per fortnight for singles and $711.80 per fortnight for couples. Is that enough to maintain your current lifestyle?
- Health Insurance? It may cover some of your medical expenses, but it won’t pay your basic living expenses or your mortgage repayments.
The alternative is to establish an income protection insurance policy, which provides you with 75% of your gross income in the event of you being unable to work due to being sick or injured.
Income protection insurance provides the protection to help you get back on your feet in the event of an injury or illness. The good news is that the premiums you pay are tax deductible. The income payments received under the policy will be assessable income for tax purposes. Income protection insurance can also be provided through superannuation – check if your fund already covers you.
So establishing an income protection policy provides you with two immediate benefits:
- The financial security to ensure the maintenance of your current lifestyle & wellbeing; and
- A tax deductible expense to reduce your income tax payable
The cost of doing nothing is far greater than the cost of insuring your future. Contact John Mujic on 1300 795 515 or email email@example.com for a complimentary insurance analysis.
This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. If you decide to purchase or vary a financial product, your financial adviser, Hillross Financial Services Limited and other companies within the AMP Group may receive fees and other benefits. The fees will be a dollar amount and/or a percentage of either the premium you pay or the value of your investments. Please contact us if you want more information. Prosperity Wealth Advisers Pty Ltd (ABN 32 141 396 376), is an Authorised Representative and Credit Representative of Hillross Financial Services Ltd, Australian Financial Services Licensee and Australian Credit Licensee.