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Income Protection Insurance - Do you have it?

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  • Income Protection Insurance - Do you have it?

    Does anyone have Income protection for sickness or the such for their husband or themselves? I can finally get it for my husband (switched jobs) and what I would like to know is - What percentage do you get back at tax time?

    Can anyone recomend their insurance provider? Anyone/thing to avoid or look out for when taking it out/

    Do some policies allow you to use it if the insured person loses their job?

    Thankyou

  • #2
    I dont think that you can get it for losing your job ...

    But their are different types of income protection insurance.

    - Some will give you a percentage of your / his income if he is unable to work for illness or injury for a set period of time

    - another type is total and permamanent disablement (TPD) for a permanent injury or illness (such as contracting a terminal illness or being in a car accident) Workers Comp will only cover you for an accident at work. If you or your partner have an accident at home then you can often struggle.

    - have a look at your mortgage if you have one, as your finance provider can often require that you have mortgage insurance, so if you are going to take out income protection insurance you may be able to drop the mortgage insurance, or alternatively just up the mortgage insurance (remember the mtge insurance is to protect the lender, so they wont just drop it without prrof)

    - life insurance, income protection insurance and TPD can often be comboined into one policy

    - life insurance and TPD (but I am not sure about income protection) can be paid by your super fund. Talk to your super manager about whether this can be done under your scheme. If they wont, look at changing super schemes, as this is something that is handy especially if money is tight.

    - I dont think any of these insurances are tax deductable (but im not 100% on that either)

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    • #3
      In the past few months we've set up the following:
      Critical Illness
      Income protection
      Both of these we pay out of our own pocket, I'm sure you can't get your super to pay for this.
      Income protection is tax deductable, but sorry, I don't know how much/% you can claim.

      We also have life insurance, this is paid for by our super.

      Our insurances are through MLC, but shop around some are going to be better than others.

      We had TPD, but found out that they rarely pay out, and only if you're in a vegetable state. We were advised that Critical Illness was a better option for us. So look into this carefully before you take it out.

      No, you don't get a payout of you lose your job.

      HTH,
      Lisa

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      • #4
        my husband has income protection insurance as well as trauma and life cover as well. It really hit home for us how important it was when he started his very first job as a medical intern and the second week in, he broke his collarbone in an accident. We'd never be without it now. Not sure what perecentage he gets back, sorry...

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        • #5
          Thankyou for you replies..

          We dont have a mortgage (paid out,but when we did we had loan protection)


          Yeah I didnt think super paid out income protection thats why I am shopping around. It is so important (in my opinon.) I have found a policy that looks good, however are very keen to hear what others have.

          You can claim it as a deduction at tax time, that why I was keen to know about percentages. I may have to ring and ask the ATO.

          Thanks for the advice and keep it comming please

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