When it comes to financial security, most people insure their homes, cars, and even their holidays—but what about your most valuable asset: your ability to earn an income? If illness or injury prevents you from working, how would you cover your mortgage, bills, and everyday expenses? That’s where Income Protection Insurance comes in.
What is Income Protection Insurance?
Income Protection Insurance provides you with a regular income if you’re unable to work due to sickness or injury. Typically, it covers up to 75% of your pre-tax income, helping you maintain your lifestyle and meet financial commitments while you recover.
Is Income Protection Tax-Deductible?
Here’s the good news: Income Protection premiums are generally tax-deductible in Australia when the policy is held outside of superannuation. This means you can protect your income and potentially reduce your taxable income at the same time. Always check with your accountant or financial adviser to confirm your eligibility.
Why You Should Insure Your Ability to Earn
Your income is the foundation of your financial future. Without it, everything else—your mortgage, savings, investments—can quickly unravel. Income Protection ensures that if life throws you a curveball, you can focus on recovery without worrying about money.
Key Benefits of Income Protection
- Financial Security: Receive up to 75% of your income during illness or injury.
- Tax Deductibility: Premiums are usually tax-deductible when held outside super.
- Peace of Mind: Protect your family and lifestyle from unexpected events.
Ready to Protect Your Income?
Don’t wait until it’s too late. Contact us today to discuss how Income Protection Insurance can safeguard your financial future. Call the office on 03 9115 6103 or contact us below:
General Advice Warning
Alan Maddick is an Authorised Representative of Vivid Financial Planning Pty Ltd AFSL 478 937. The information provided in this article is general advice only and does not take into account your individual objectives, financial situation, or needs. Before acting on this advice, you should consider whether it is appropriate for you. We recommend you read the relevant Product Disclosure Statement (PDS) and seek professional advice before making any decision.