What's the difference between life insurance and income protection?
Income protection insurance pays a monthly, ongoing benefit in accordance with your policy’s waiting period and benefit period, while life insurance pays a lump sum payment if you pass away or are diagnosed with a terminal illness. The main purpose of income protection is to insure your income, not your life. Also, unlike life insurance, the cost of income protection insurance is generally tax deductible when taken out outside of superannuation, meaning you can claim the cost of the policy each year at tax time.