6 Benefits of Having Income Protection Insurance
You never know what’s just around the corner, so having income protection in place can help provide you with financial security if you’re unable to work due to sickness or injury. Below are 6 benefits of having Income Protection Insurance.
1. Know there’s a back-up plan
It’s important to consider how you would make ends meet if you were unable to work because of illness, injury or involuntary redundancy. There are numerous expenses like mortgage, rent, bills, and groceries that need to be taken care of, on a day to day basis. While we can surely fall back on some savings or credit cards for a while, it becomes challenging if it’s more than a while. Suncorp Income Protection Insurance can cover up to 75% of your income (maximum of $10,000 per month) for a period of up to 2 years.
2. Avoid a credit pileup
Recovering from a sickness or injury may leave you with some significant costs to cover, like medical costs, utility bills, rent or mortgage repayments. With more money going out and less coming in during your recovery it’s easy to rely on credit cards, however they then come with credit card interest. Income Protection Insurance can help contribute towards these expenses and help you avoid a debt pile up. With a bit of forward planning you can avoid missing out on your end of year family trip or that home extension you’ve been saving for.
3. Help protect your family’s lifestyle
If you are ill or injured and unable to work your family may have to make some sacrifices and you may need to compromise on your standard of living. With Income Protection cover you can help contribute towards maintaining your family’s lifestyle and reduce some of the financial stress on you and your family.
4. Income Protection Insurance premiums may be tax deductible^
According to the ATO, ‘you can claim the cost of premiums you pay for insurance against the loss of your income.’ Depending on your circumstances, income protection premiums are usually tax deductable if you’re working, which means you could save at tax time. This only applies to standalone Income Protection Insurance; it doesn’t apply to when Income Protection Insurance is taken out through your superannuation and premiums are deducted from your super balance. Speak to your accountant to ensure you include your premiums on your tax return for an Income Protection tax deduction.
5. Make sure that you don’t have to move back in with your parents
Income Protection Insurance doesn’t just benefit those with a mortgage and family. Generally if you’re under 30, your premiums are likely to be lower than, say, someone in their 40s. Help protect your independence with Income Protection so you don’t have to move back in with mum and dad if you are sick or injured and unable to work.
6. Cover for if you’re made redundant
Suncorp Income Protection policies offer an optional cover if you’re made involuntarily redundant. This optional cover is available – and you can apply for cover for up to 75% of your monthly income, up to a maximum of $4,000 a month – if you become involuntarily redundant; providing you with up to 3 months of paid cover while you look for another job. This can help reduce the stress of being unemployed.
We Australians don’t think twice about protecting our possessions with car, home, and contents insurance, so let’s protect our most valuable assets as well: our income and lifestyle. Get an Income Protection Insurance quote online within minutes, with no medical tests needed to apply.
If you have any questions about how Income Protection Insurance can help you, then speak to us about Suncorp Income Protection on 13 11 55 (Mon to Fri 8am–8pm).
Suncorp Income Protection Insurance is issued by Suncorp Life & Superannuation Limited ABN 87 073 979 530 AFSL 229880 and AAI Limited ABN 48 005 297 807, AFSL 230859 who only issues the redundancy benefit. Suncorp Income Protection Insurance is distributed by Suncorp Financial Services Pty Ltd ABN 50 010 844 621, AFSL 229885 (SFS). Any advice in this information is general advice only and has been prepared without taking into account any person's objectives, financial situation or needs. You should consider the Combined Product Disclosure Statement and Policy Document (PDS) for Suncorp Income Protection before making any decisions about whether to acquire this product. Terms apply, including eligibility, 6 month no-claim period for the redundancy benefit and a 30 day waiting period.
^The tax treatment of your Income Protection policy depends on your individual circumstances. If you are working, premiums are usually tax deductible and any benefit payments received are generally assessable for tax purposes. These comments are a guide only and do not take into account changes in taxation laws or your individual circumstances. GST does not apply to the Income Protection Disability Benefit but it does to the Redundancy Benefit. If tax laws are altered, we reserve the right to increase premiums to reflect any applicable GST or any other Government taxes and charges that may be introduced. Any increase would be in accordance with our legal obligations. Please ask your tax adviser or the Australian Taxation Office about your own circumstances.
Information is intended to be of a general nature only and any advice has been prepared without taking into account any person's particular objectives, financial situation or needs. You should make your own enquiries, consider whether advice is appropriate for you and read the relevant Product Disclosure Statement or Product Information Document before making any decisions about whether to acquire a product