What income protection covers you for in Australia is monthly benefit 70% to 75% of pre-tax income up to $10K to $20K per month if you cannot work due to illness or injury, costing $30 to $100 per month for $5K monthly benefit, with waiting period 30 to 90 days and benefit period 2 years to age 65. Income protection, also called salary continuance, covers you if you are sick or injured and cannot work, paying 75% of income $3,750 per month for $5K salary, after waiting period 30 days, for benefit period 2 years, 5 years or to age 65, covering illness like cancer, back injury, mental health, and injury from accident, with total cover $500K to $1M over years. For example, if you earn $80K per year $6,667 per month and have 30-day waiting, income protection pays $5,000 per month if you cannot work for 6 months due to back injury, total $30K, plus rehabilitation and retraining $5K. It covers both work and non-work illness and injury, unlike workers comp which only covers work injury. It also covers part-time return to work with partial benefit. So income protection covers you for loss of income due to illness or injury, paying 75% of salary up to $20K per month, costing $30 to $100 per month for $5K benefit, with 30 to 90 day waiting and benefit to age 65, essential if you have mortgage $500K and family.
1 votes
Marked as accepted