Work
If the premium jumps
Why this matters. Income-protection cover and the premium are two numbers. A premium can rise without the cover changing. You type both. The page does not quote a policy.
What a higher income-protection premium does to what’s left each year, and how cover for your own job differs from total-and-permanent disability inside super. You set the rise. This is not a quote.
Yearly cover
$187,500Example premium you typed
75% of income · wait 90 days · To age 65
Own job, paid from your cash
Pays an income if you can’t do your own job. The premium comes out of cash.
Leftover now $162,390
After a 40% rise, left over $160,694
Premium after the rise $11,200, after the tax deduction you ticked.
Can’t work at all, paid from super
A lump sum if you can’t do any job your training fits. The premium comes out of super, so cash left this year stays $166,630. What falls is the super balance.
These are not the same cover. This page doesn’t rank a policy. Read the one you already hold, or ask the adviser who arranged it. MoneySmart — income protection ↗
Next: Doctor budget — Premiums have to fit the month.
What doctors often miss
The cover and the premium are the amounts you type. A higher premium does not change the cover unless you change that box.
Included / Not included
Included
- The rent, interest rate, and vacancy months you type · Example assumption, editable
Not included
- Land tax, capital growth, and what a bank will lend
- Your tax bracket unless the page applies one
- Stamp duty, brokerage and inflation
Assumptions you can edit are the inputs on this page. This is a model, not a prediction, a tax assessment, or a recommendation.
A rough figure — not advice. Terms
Also
Advertisement — labelled, never inside the number.