Income protection insurance
Income protection insurance is a topic that has captured the attention of millions of people around the world. With its impact on society and its relevance in everyday life, this topic has generated strong interest in different areas, from popular culture to academic research. As time has passed, Income protection insurance has evolved and taken on new dimensions, challenging pre-established notions and generating passionate debates. In this article, we will explore the different facets of Income protection insurance, from its origins to its current influence, with the goal of better understanding its importance and place in our society.
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Income Protection Insurance (IPI) is an insurance policy, available principally in Australia, Ireland, New Zealand, South Africa, and the United Kingdom, paying benefits to policyholders who are incapacitated and hence unable to work due to illness or accident. IPI policies were formerly called Permanent Health Insurance (PHI). The same concept is instantiated in the United States as disability income insurance (disability insurance).
A study by British insurer Legal & General, entitled Deadline to the Breadline Report 2014, found that only 8% of UK households have income protection insurance.
United Kingdom
Income protection is not tax deductible in the UK, however exceptions are available for the self employed and for company directors.[citation needed]
Australia
Income protection in Australia is tax deductible though the payments received are taxable.
Ireland
Income protection insurance in Ireland is widely considered the most tax efficient of insurance as the governments of Ireland.[citation needed] Higher earners can claim back up to 40% of their premiums back as tax relief annually.[citation needed] In Ireland, the maximum payout threshold is 75% of prior gross salary.[citation needed]
New Zealand
Income protection insurance in New Zealand is more complicated an depends on whether or not the payments are related to super.[citation needed] In most cases it is tax deductible.[citation needed]
References
- ^ "Deadline to the Breadline Report 2014" (PDF). Legal & General. 25 November 2014. Archived from the original (PDF) on 2 April 2015. Retrieved 30 March 2015.
- ^ "Income protection insurance".