Income Protection Insurance 101
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Income Protection Insurance allows you to insure one of your most important assets, your ability to earn an income. If an accident or serious illness were to prevent you from working, Income Protection Insurance can provide you with an income (usually a set percentage of your current before-tax income).
You might like to consider Income Protection Insurance if you:
- Have a family or other dependants you support;
- Have a debt such as a mortgage or personal loan that needs to be paid for even if you are unable to work; or
- Own a small business or are self-employed and do not have access to employment benefits such as sick leave.
Starting from $1,000 per month, NobleOak’s Income Protection cover can protect up to 75% of your before-tax income to a maximum of $25,000 per month. Within these guidelines, you can choose the monthly benefit to suit your needs and budget, as your premiums will be calculated on the amount of the cover. This means you can continue to provide for your family, pay your mortgage and keep up with day to day living expenses.
According to the Australian Tax Office (ATO), Income Protection Insurance premiums are generally tax-deductible. The position can vary where cover is purchased as part of superannuation arrangements (for example, through an SMSF, or through an industry or retail super fund). Remember, you should seek out professional advice from an accountant or suitably qualified professional before making any purchases based on the tax implications.
Ready to get started or looking for more information? Head over to NobleOak to discover more about Income Protection Insurance today!
This article is sponsored by NobleOak Life.
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