In the event of a prolonged illness or serious accident would you want 100% of your income to be replaced?

Are you only covered for 75% of your income?

If the answer to either of the above is yes, and you have been told that 75% is the maximum allowable, give John Morris a call on 08 8271 5144.

Income Protection

Complying Superannuation Funds can now receive a tax deduction under section 279 of the ITAA for insurance premiums that relate to Income Protection policies providing benefits for a period exceeding 2 years.

This replaces the previous situation where a super fund could only claim a deduction for a policy with a 2 year benefit period. To have appropriate protection an individual would then have to pay the premium and get a personal tax deduction on another policy with a 2 year waiting period, accident and illness benefits payable to age 65.

Life Cover

Not getting a tax deduction for your life insurance?

With the removal of the reasonable benefits limit (RBL) in the May 2006 Federal Budget it is now possible to have all Life and Total and Permanent Disablement premiums deductible to a superfund. The previous upper limit of $1,297,886 was woefully inadequate considering that it was a combination of the account balance and life insurance cover.

Now is the time to review the deductibility of your cover as well as the amount.

John Morris – Risk Specialist

Disclaimer: The article above contains information for general use only. These articles are not based on individual needs or meant to give advice. Additional information and professional advice regarding issues raised in this publication may be obtained from Thornton Group advisers, who are authorised representatives of Thornton Group (Australia) Pty Ltd trading as Thornton Group (License No. 223670)