Salary continuance and income protection both offer peace of mind that your income will continue even if you cannot work due to illness or accident. But there are a few differences.

Many people these days see the need for some kind of income protection insurance. They realise that their ability to earn income is actually their biggest asset and should thus be protected. Accidents and illness can happen to anyone and can play havoc with your financial status, especially if the effects are ongoing.

But with insurance you can have the peace of mind that you will be paid at least 75% of your salary should you be unable to work due to the above reasons. However, for those who are still thinking about income protection, confusion may arise when you hear the two terms; salary continuance insurance and income protection insurance. Is one different from the other and if so, which one should you decide on? While the two are quite similar there is one main difference you should know about and that is to do with the length of the payment time.

The maximum length of time that payments can continue with salary continuance insurance is for the most part, only two years. In addition, it is only available through your superannuation, so if you do not have superannuation you would not be able to access salary continuance insurance.

But with income protection insurance you can have a choice of payment time of right up to age 65 – retirement age. Income Protection premiums are 100% tax deductible. It is important to note that most kinds of income protection insurance policies can be tailored to suit your needs, so if you feel that what is offered is not quite right for you, it will not hurt to ask if some of the details can be changed. Increasingly, insurance companies are becoming more willing to create products that are attractive to potential customers due to certain features that they may need or find more useful.


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