Income Protection – How Much Can You Be Covered For?
Income protection will pay you an income should you not be able to work due to sickness or accident.
There are many different variables to income protection, each of these variables have an effect on what you are covered for. Some of these variables include
- Waiting period
- Benefit period
- Amount you can be covered for
- Payment structures
- Tax on income protection
- Occupation
- Evolution of income protection
In this series, I’m going to break down into bite sized chunks these different variables.
Amount covered for
The amount you can be covered for is upto 75% of your income. So if your income is $100,000, you can be covered for $75,000.
What this means is that if you have more than one income protection policy, and you have to make a claim, if both policies take you over the 75% threshold, you are over insured. One of the policies will have to reduce the payout.
If you are interested in finding out more about income protection or if you have any questions, send me a message and we can have a obligation free consultation.
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