Is Income Protection tax deductible?

Most of the time, income protection premiums are tax deductible if you’re working (depending on a few individual circumstances). That means at tax time you may be able to claim your premium as a deduction and potentially save money. Depending on your earnings and tax bracket, the table below can be used as a guide to see what you could potentially save. The examples used here are based on a payment of AAMI Income Protection premiums of $1,000 per year: Your Annual Earnings AAMI Income Protection Annual Premium Marginal Tax Rate* Value of tax deduction** Cost of cover after tax Over $180,001 $1,000 45% $450 $550 Between $87,001 - $180,000 $1,000 37% $370 $630 Between $37,001 - $87,000 $1,000 32.5% $325 $675 Between $18,201 - $37,000 $1,000 19% $190 $810 Between $0 - $18,200 $1,000 0% $0 $1,000 *For the 2017/18 financial year. The above marginal tax rates do not include the: - Medicare levy of 2%; - Temporary Budget Repair Levy payable at a rate of 2% for taxable income over $180,000. **The value of this tax deduction noted above will depend on a taxpayer’s individual circumstances. For the purposes of this table it is assumed that the taxpayer has only a single deduction (the annual premium for AAMI Income Protection cover) allowing the deduction to be applied at the highest marginal tax rate applicable to the taxpayer.

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Income Protection Insurance

If you become sick or injured and unable to work, Income Protection cover can help cover most of your expenses and keep your life on track.

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Existing AAMI customers get 5% discount on their policy

Why is Income Protection important?

Income Protection is designed to help you get back on your feet. If you’re unable to work due to sickness or injury, AAMI Income Protection is here to help. With our Comprehensive Income Cover, you can receive up to 75% of your average income (less business expenses) over the previous 12 months, up to $10,000 a month. That way, you can keep on top of bills while you stay focused on recovering.

It’s up to you how you use your monthly benefits:

Rent or mortgage payments

Bills and credit card repayments

Childcare and school fees

Or even basics like food, clothing or petrol

What's included?

Features and Benefits

Cover per month

Up to 75% of income* (less business expenses) to a maximum of $10,000 a month, for those working a minimum of 20 hours/week.

*75% of the average of the last 12 months’ pay at time of claim

Claim waiting period

Your choice of 14, 28, 60 or 90 days.

View the graph to find out more about the claim waiting period.

Claim benefit period

Your choice of 6, 12 or 24 or 60 months.

When are benefits paid?

Benefits build up from the end of the waiting period (after a successful claim has been made) and are then paid monthly.

You can choose the Accident Benefit Option which backdates benefits to the start of the 14 or 28-day waiting period in the event of an Accidental Injury. This benefit is not available on policies with a 60 or 90 day claim waiting period.

Extra benefits to help you get back to being fit for work.

Includes cover for pre-existing medical and mental health related conditions, if you meet health assessment criteria.

Accident benefit option on 14 or 28-day waiting periods.

This is just a summary. For details about what is and isn’t covered, view the Combined Product Disclosure Statement (PDS) and Financial Services Guide (FSG) for eligibility, limits and exclusions.

Additional benefits

To stay on top of your policy, it’s good to know the little perks:

You can apply for Comprehensive Income Cover without any medical tests.
When you’re receiving benefits you won’t have to pay a premium.
If you’re an existing AAMI Insurance customer you’ll receive 5% off on AAMI Income Protection premiums for the life of the policy.

Applying is quick and easy

No lengthy forms or medicals
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What's not covered?

Unfortunately some events will not be covered by your policy

Death Income Protection is designed to help you get back on your feet if you are sick or injured. For death cover, you may want to consider Life Insurance to protect those close to you.
Some medical conditions There are a small range of conditions which are not covered under the disability benefit in Income Protection. Read the Product Disclosure Statement or call 13 22 44 for more information about this.
Back pain For claims of less than 90 days duration.
Multiple insurance benefits The maximum benefit payable is 75% of your income. If you receive compensation from other sources such as disability benefits, these will be deducted from your monthly benefit payment.
Dangerous sports and occupations If you are attempting to engage in or engaging in: mountaineering, abseiling, rock climbing or canyoning; diving to a depth of 45 metres or more, pothole diving, wreck diving or diving in a cave, you’re not covered under any AAMI Income Protection policy.

Other exclusions may apply, please see the PDS and Policy Schedule for further details.

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If you’re having any issues paying your premium payments, no need to worry, we have options that can assist. Please give us a call so we can work out the best way to help you.

Protect one of your biggest assets -your income

From rent or mortgage repayments to food and regular bills, school fees, day to day expenses, and those unexpected costs we rely on our incomes to cover some of the most important costs in our lives. A vital asset worth protecting, income protection can help you continue to cover these expenses if you’re unable to work due to sickness or injury.

Learn more about how income protection can help you stay on top of your expenses.

If you find yourself unable to work due to injury or illness, income protection can help cover your expenses, so you and your loved ones aren’t left scrambling to pay the bills.

With AAMI Life, you’ll be covered for up to 75% of your income to a maximum of $10,000 per month. We know life is always changing; there’ll be new jobs, new houses and even new family members who rely on your income. So if you need to take time off work due to a physical or mental health condition or injury, AAMI Life can help.

With AAMI Income Protection, you can choose your waiting period, the length of time between injury or illness and making a claim, and your benefit period which is the maximum amount of time that you’ll receive payments, so you can make sure it’s the right policy for you. Usually the longer the waiting period and shorter the benefit period, the lower your premiums are.

Remember, your income is one of your biggest assets, so it’s important to find ways to cover it.

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General advice only. You should consider if the advice is right for you and read the PDS available at aami.com.au/policy documen ts before making a decision to buy or continue to hold a product. The Target Market Determination (TMD), where applicable, for the product is available on our website at aami.com.au/policy-documents.

This video is brought to you by TAL Direct Pty Limited 39 084 666 017 AFSL 243260. Products are issued by TAL Life Limited ABN 70 050 109 450 AFSL 237848 (TAL Life or insurer) which is part of the TAL Dai-ichi Life Australia Pty Limited ABN 97 150 070 483 group of companies (TAL).TAL Life is not part of the Suncorp Group. TAL Life uses the AAMI brand under licence from the Suncorp Group.

Not sure how much cover you may need?

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How to claim in 3 easy steps

In the unfortunate event that you need to make a claim, we're here to help.

1. Call us

Call us on 13 22 44 as soon as possible after the event

2. Receive a claims pack

We'll send you a claims pack to fill in

3. Complete form

Send us the completed claim form and requested information

Learn more about how to make a claim and what you'll need

Income Protection

Frequently asked questions

For the Sickness and Injury cover, it depends on the benefit period you have chosen. Each time you make a claim that’s accepted, you can be paid for up to 5 years, as long as you’re still unable to work due to the sickness or injury during that time.

You can claim as many times as you need over the life of the policy. The payment of benefits is subject to the relevant terms that apply to your policy, including any exclusions or limitations – check out the Combined Product Disclosure Statement (PDS) and Financial Services Guide (FSG) to find out more.

If you suffer from the same or related sickness or injury that you have previously claimed for within 6 months of your last benefit being payable, we will recommence benefit payments without applying a new waiting period. These benefits will be added to the remaining benefit period to ensure the maximum payment under the benefit period is not exceeded. If you’ve made a full recovery and there is more than 6 months between claims, then you will commence a new claim and the benefit period will restart.

Most of the time, income protection premiums are tax deductible if you’re working (depending on a few individual circumstances). That means at tax time you may be able to claim your premium as a deduction and potentially save money.

Depending on your earnings and tax bracket, the table below can be used as a guide to see what you could potentially save. The examples used here are based on a payment of AAMI Income Protection premiums of $1,000 per year:

Your Annual Earnings	AAMI Income Protection Annual Premium	Marginal Tax Rate*	Value of tax deduction**	Cost of cover after tax
Over $180,001	$1,000	45%	$450	$550
Between $87,001 - $180,000	$1,000	37%	$370	$630
Between $37,001 - $87,000	$1,000	32.5%	$325	$675
Between $18,201 - $37,000	$1,000	19%	$190	$810
Between $0 - $18,200	$1,000	0%	$0	$1,000

*For the 2017/18 financial year. The above marginal tax rates do not include the:

- Medicare levy of 2%;

- Temporary Budget Repair Levy payable at a rate of 2% for taxable income over $180,000.

**The value of this tax deduction noted above will depend on a taxpayer’s individual circumstances. For the purposes of this table it is assumed that the taxpayer has only a single deduction (the annual premium for AAMI Income Protection cover) allowing the deduction to be applied at the highest marginal tax rate applicable to the taxpayer.

We’re sorry you’re thinking of cancelling. For policy cancellations or to discuss your situation further, please call us on 13 22 44. If you do cancel, you may qualify for a refund for the unexpired portion of the premium less our cancellation fee and any non-refundable government charges (if applicable).

The Life Insurance Code of Practice is a series of customer service standards that all life insurers who are members of the Financial Services Council (FSC) need to comply with. These standards cover sales and marketing practices, underwriting and claims and are designed to protect you.

AAMI Life Insurance policies are issued by TAL, who played a key role in creating the Life Insurance Code of Practice. AAMI Life is committed to delivering the best possible customer service standards and support the Financial Services Council in promoting and monitoring the Code of Practice. AAMI Life will continue to look for ways to raise the standards of customer service now and over the years to come. Read more

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1. Customers of TAL Life Limited (TAL Life) which hold AAMI branded products. TAL Life is part of the TAL Dai-ichi Life Australia Pty Limited ABN 97 150 070 483 group of companies (TAL). TAL Life is authorised to use the AAMI brand under licence from the Suncorp Group. The Suncorp Group is a distributor of life insurance provided by TAL.

2. Eligibility criteria and policy terms apply.

TAL Life supports and adhere to the Life Insurance Code of Practice (Code). The Code has been developed voluntarily by the Life Insurance industry through the Financial Services Council to promote high standards of service to consumers, provide a benchmark of consistency within the industry, and establish a framework for professional behaviour and responsibilities.