How Much Life Insurance Cover Do I Need?
As a rule of thumb, most life insurance companies estimate an appropriate amount of life cover for life insurance is 6-10 times your annual salary. However, working with a financial adviser means you can make a more accurate estimate of your financial needs from life insurance.
For the other types of life insurance (trauma, TPD or IP), a financial planner can help you compare life insurance quotes and life insurance costs to make sure you know how much cover you need.
Is Life Insurance Tax-Deductible?
Income protection insurance is usually tax-deductible if it is not held within your super fund. If it is through your superannuation, the super fund handles the tax deduction for you.
Total and permanent disability insurance purchased through your superannuation fund are generally tax-deductible also. However, life insurance policies purchased outside of your superannuation are not tax-deductible.
When exploring your life insurance options, we can explore the possibilities of tax deductions as well.