Income Protection Cover is designed to provide you with an ongoing monthly income if you are unable to work due to sickness, injury or accident. You can usually cover up to 75% of your income plus superannuation contributions.
Premiums are generally tax deductible, whilst benefits are subject to tax, like your income.
You’ve just taken out your first mortgage to purchase your dream home and have been doing some minor renovations before moving in.
You work full-time and live comfortably on an annual salary of $85,000. Then, one weekend while fixing the living room window, you fall and injure your back.
The result, you are unable to work for 12 months and you have three weeks worth of sick leave entitlements from your current employment.
How would you cope financially? Would you have enough money to continue to meet the mortgage repayments as well as pay the daily bills?