Income Protection Insurance With Super

Where eligible you can be paid a benefit of up to 85 of your monthly pre disability income.

Income protection insurance with super. They pay out for a set period usually up to two years while you get back on your feet and return to work. Income protection covers total or partial disablement only. There are pros and cons to taking income protection insurance through your super. If it is not part of default cover just about all funds offer it as an optional extra.

Questions are being raised as to whether your superfund is the best place for all your cover. It doesn t cover redundancy. Instead of a lump sum income protection generally pays you on a monthly basis to cover part of your lost income. Depending on the type of cover you select you can choose to receive 50 or 75 of your monthly income paid directly to you as well as 10 of your monthly income paid as a contribution into your super account.

Income protection insurance covers you in the event that you become ill or injured and are unable to work for an extended period of time. Long term income protection is available too will provide a regular income for a longer pre agreed period until you are well enough to return to work. Keep adding to super with income protection. However your income protection insurance is offered through our own insurer who provides affordable bulk insurance rates for our members.

Income protection is less common that life insurance and tpd inside super but more funds seem to be offering it as a default cover with life and tpd. This type of cover provides you with a regular income of up to 85 of your monthly salary for a period of up to two years giving you peace of mind knowing you will continue to receive a regular income. Insurance against loss of income from business closure or lack of shifts can t be provided by super funds. Income protection insurance can also be useful where what initially appeared to be a short term injury is later diagnosed as permanent.

Income protection sometimes called salary continuance insurance provides a regular monthly benefit up to 85 of your pre injury illness salary. Superannuation funds have long provided a minimum amount of life insurance to members but many are now starting to add other types of insurance income protection insurance is one of them. If you need to take extended time off work to recover from an injury or illness income protection cover can help pay the bills. If you have income protection insurance with qsuper the cost of cover is not tax deductible.

The first 75 is paid as income and anything over 75 is paid into your super. Costs are deducted from your super account each month so there s no impact on your day to day budget. This includes super payments.