Could you live on $589.60 / fortnight?
The fact of the matter is if you’re unable to work and don’t have Income Protection Insurance (IPI) you’ll have to live off the government’s Disability Support pension of $589.60/fortnight*.
* Centrelink will pay a maximum disability support pension of $589.60 (each) per fortnight for couples.
Many Australian’s don’t have IPI because they’re still reacting to the myths from the 80’s:
- MYTH: BBQ stories of neighbours who had to wait 12 weeks to claim … well times have changed.
- MYTH: I can’t afford IPI premiums – well times have changed – $3.80/day paid straight from your Super. No cash out of your pocket!
- MYTH: IPI is only for the self-employed. Even ‘AISC’ states “it is an important consideration for anyone who relies on an income”. Notice they didn’t say just the self-employed.
- MYTH: You can’t claim tax on insurance… well times have changed – you can claim 100% of your premium on your annual tax return if you pay for your IPI from your salary (not available if you pay for your IPI out of your Super)
- Delusion: “It will never happen to me’ or ‘I get by on the Centrelink Sickness allowance”
IPI will pay you 75% of your income for literally the price of a coffee a day (clichéd but true) … and with IPI you will still be able to buy yourself a coffee! Without it you will be selling items, downsizing or moving back in with your parents.
In case you need more evidence:
Estimate your fortnightly expenses = $xxx
Deduct Sickness Allowance payment benefit = $589.60
Balance remaining = -$!!!
This is the total you will need to cancel / sell / put on hold.
And let’s be honest in this current climate not too many companies are willing to put your payments on hold for 6 months whilst you get better.
They are in business to make money and if you can’t pay they simply won’t supply.
So ask yourself – could you live on $589.60 per fortnight.
But wait there is more – Add to this scenario your income level and home ownership status – if the government deems your income or home value as high it will drive the paltry Allowance payment down even further.
I strongly encourage you to at least look at your options. IPI is no longer something that belongs to high earning executives.
As my dad would say “Son – ask yourself can you afford not to have it?”
Why is it we expect drivers to have insurance, businesses to have workers comp insurance yet we don’t have the same expectation in protecting the one thing that provides the lifestyle we enjoy – our incomes?