Income Protection Insurance replaces the income lost through your inability to work due to illness or injury. Usually you can get a cover for up to 75% of your gross salary/income. Income Protection is a must have for all self-employed, small business owners or any other professional whose business or income relies on your ability to work.
You'll earn at least $2,000,000 in your lifetime - it makes sense to protect it!
Income Protection prices vary by 40% in Australia. So to receive the most competitive price on your policy you need to make sure you get income protection insurance quotes comparison from 10 leading insurance companies in Australia.
Lets say you are 40 years old manager working in VIC and earning $70,000. If you are non-smoker man maximum cover for income protection would cost you:
- cheapest - $43.81/monthly;
- most expensive - $64.69/monthly.
That's 47.66% difference or $250.56 per year wasted! For some occupations the difference is even bigger.
Don't forget that income protection premiums are tax deductible and you can claim the cost of premiums against the loss of your income. So effectively your income protection premiums are 30-50% cheaper (depending on your marginal tax rate).
How Much You Should Be Paying For Your Income Protection?
Before getting any income protection quotes you have to remember that the most important thing when buying income protection is to get your occupation classified right! Avoid most common Income Protection mistake - Having WRONG income protection is worse than having NO income protection!
After paying insurance premiums you want to be sure you are going to be paid when you need it most. Get your occupation classified and quotes compared from 10 leading insurance companies in Australia. Submit the form on this page for a quick income protection quote!