Income Protection Insurance

Income Protection Insurance

Income Protection Insurance 150 150 Rodney Quong

As FY22 kicks off, it is a timely reminder for clients to seek advice to review (make any changes to meet their current financial situation) their income protection insurances for the future.

Claiming a tax deduction on income protection premiums is common practice but it’s important to understand which policy ancillary benefits are eligible for tax deductions. For income protection policies that provide lump sum trauma benefits and lump sum specified injury benefits, the Australian Tax Office (ATO) has provided guidance that approximately 5% per cent of the income protection premium would not be tax deductible. Please seek advice from your financial adviser or accountant.

For clients who do not hold income protection insurances it is most urgent they seek advice on these types of insurances before the 30th of September 2021, as the industry will be under regulatory requirement to release more sustainable income protection insurance contracts.

Rodney Quong is an Insurance Consultant at Viridian Advisory.

This post and some supporting materials may be regarded as general advice. That is, your personal objectives, needs or financial situations were not taken into account when preparing this information. Accordingly, you should consider the appropriateness of any general advice we may have given you, having regard to your own objectives, financial situation and needs before acting on it. Where the information relates to a particular financial product, you should obtain and consider the relevant product disclosure statement before making any decision to purchase that financial product. The material in this post is correct and complete as of the data it was posted. Viridian is not responsible for, and expressly disclaims all liability for, damages of any kind arising out of use, reference to, or reliance on any information contained within this site.

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