Income Protection Insurance And Tax

Unlike other forms of personal risk insurance, Income Protection Insurance premiums are tax deductible for most taxpayers.

The after tax cost of the cover can therefore be significantly less than the cost of the premium.

You can claim the cost of any premiums you paid for insurance against the loss of your income.

You must include any payout you received under the policy for loss of your income on your tax return.

You cannot claim a deduction for a premium or any part of a premium which you paid under a policy to compensate you for such things as a physical injury.

Life Insurance, trauma insurance and critical care insurance are some types of policies for which premiums are not deductible.

For more information on income protection insurance please contact one of our friendly advisors who will be happy to provide you with a free quote.

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Published on February 2-th, 2010 in Income Protection Insurance
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.

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