Income Protection Insurance pays up to 75% of your annual average income, in monthly benefits, to cover your expenses if you are unable to work. If you have Life or Trauma Cover (with TPD) that is important to protect against a critical illness or major accident, but what happens if you are off work with a less serious ailment or one not defined in these policies. You may be away from work for several months, six months, a year or even longer. Income Protection allows you to cover your expenses and maintain your lifestyle as you concentrate on getting better.
The definitions of not working are very reasonable – often if you cannot perform one of your normal work duties whilst ill. Importantly, the annual premium for Income Protection Insurance may be tax deductible to you.
Fact: There is a high chance we will be off work at some time.
A recent study found that around half of all Australians over the age of 30 will suffer a major illness that can lead to long-term disability, and consequently, a long-term loss of income.*
Want to find out more?
Taking out insurance is sound financial management. Wealth protection is as important as its creation, and much easier and quicker to achieve. For further information and an assessment of your own personal needs, contact Star Financial Services.
*Source: AMP.NATSEM. Income and Wealth Report, Issue 4, March 2003
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