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The Ins and Outs of Income Protection Insurance

Income protection insurance can be an important part of your wealth protection program. At Approved Financial Planners, we offer income protection insurance from AMP Capital, which is our parent company.

Ins and Outs of Income Protection Insurance

How Does Income Protection Insurance Work?

So, what is income protection insurance? It protects your family and your lifestyle if you are unable to go to work due to injury or sickness by paying up to 75% of your current income. (1)

Income protection insurance may be appropriate for you if you want to sustain or replace your current income in the case of injury or sickness. It can also be appropriate if you want to protect and secure your and your family’s financial future. You may want income protection insurance if you are looking for a product that can be adjusted to meet your individual financial needs. (1)

The premiums on income protection insurance are tax-deductible. If you need to collect, you are allowed to use the money as you choose, with no restrictions. (2)

Think You’re “Already Covered”?

You may think you are “already covered,” but other insurance plans through your employer, private health cover and the Government may not provide the protection that income protection insurance will. Here are typical coverages that you may already have.(2)

Sick leave entitlements usually cover an employee for up to 12 days of missed work per year. It is like income protection insurance, but it only lasts 12 days. Workers’ compensation covers you if you are injured on the job but doesn’t cover sickness. Private health cover covers sickness, but only covers your medical expenses, leaving you on the hook for living expenses. Centrelink pays disability, but the payouts are means tested and are often not enough to sustain your current lifestyle. (2)

Call Approved Financial Planners Today

To learn more, call us today: 08 6462 0888.

AMP, Income Protection: “Keep your financial life on track while you’re unable to work.” https://www.amp.com.au/personal/insurance/products/insurance/income-protection
AMP Brochure, “Protect your income and your lifestyle.” https://www.amp.com.au/content/dam/amp/digitalhub/common/Documents/Insurance/Brochures/AMP-Do-I-need-income-protection-brochure.pdf