Income Protection Insurance
Your income is your most valuable asset. Income protection insurance replaces a portion of your earnings if illness or injury stops you from working - so your bills don't pile up while you recover.
How Does Income Protection Work?
Income protection pays you a monthly benefit of up to 70% of your pre-tax income if you're unable to work due to illness or injury. Payments begin after your chosen waiting period and continue for your selected benefit period.
Monthly Benefit
Up to 70% of your pre-tax income
Waiting Period
14 days to 2 years
Benefit Period
2 years, 5 years, or to age 65
Understanding Waiting & Benefit Periods
Waiting Period
This is the time between when you stop working and when your benefit payments begin. Options typically range from 14 days to 2 years. A longer waiting period means lower premiums - so if you have sick leave or savings to cover the initial weeks, you can save on costs.
Benefit Period
This is how long your payments will last once they start. Common options include:
- 2 years - Lower cost, suitable if you have other resources
- 5 years - A balanced middle ground
- To age 65 - Maximum protection until retirement
Tax Benefits
Outside Super
Premiums are tax-deductible when held outside super, reducing your taxable income
Through Super
Premiums attract a 15% tax rebate when paid through your super fund
Important: Super Salary Continuance Limitations
Income protection through super (salary continuance) is often limited to a maximum benefit period of 2 years. If you need longer-term protection, a policy outside super may be more appropriate. We can help you compare both options.
How Much Cover Do I Need?
Income protection benefits are generally up to a percentage of pre-tax income (often around 70%). The appropriate level depends on individual circumstances and ongoing financial commitments.
Some commonly considered factors include:
- Existing sick leave or employer benefits you may have
- Savings or emergency funds you can draw on during the waiting period
- How long you could manage without income before benefits kick in
Tip:A longer waiting period, such as 90 days, can reduce premiums, but means benefits start later. It's important to consider whether you could cover expenses during that period.
Protect Your Income, Protect Your Life
We'll help you find the right balance of waiting period, benefit period, and premium - matched to your situation.