The inability to earn regular income due to an injury or sickness can be financially devastating for you and your family. Income Protection insurance benefits can help pay for day-to-day living expenses such as food, utility bills, rent or home maintenance costs, mortgage or other debt repayments.
Ask yourself the following questions:
- Health insurance will pay your medical expenses, but how will all your other expenses be paid?
- Who will cover the car payment and the mortgage if you’re suddenly unable to work?
- Who will pay for groceries when you have suffered loss of incomes?
Income protection insurance is a possible answer to this problem.
This policy provides regular payments to you, as if you were still getting a paycheck, if you become injured or ill. When you buy the policy, you choose how long you’ll have to wait after the injury/illness occurs before the insurance will begin paying you. This enables you to exhaust any sick leave or other time-off-work benefits you may have before turning to this insurance. And don’t forget that Income Protection insurance is tax deductible.
You can be insured for up to 75 per cent of your income (net of any business expenses and before tax). You can also choose to insure 100 per cent of super guarantee contributions (up to 9 per cent).
We encourge any of our clients with income over $50,000 to seriously consider their insurance options. If you don’t have insurance we’re happy to speak with you about your needs and, through our strategic alliance with 2020 Financial Solutions, get you the best deal in the most tax effective way.
Article by Christie Lewis
Christie is Practice Manager at Alan Lewis Accountants . Besides accounting, her passion is for all things small business (and blogging, of course). You can contact Christie directly at christie@lewistaxation.com.au.
Christie has written 799 awesome articles for us at Alan Lewis Accountants – BLOG
Twitter: @christielewis
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