You’ve spent years building financial security, investing, planning, and making smart moves. Then, bam! Life throws a curveball, like that time you thought you could still do a backflip at 35 and spent six weeks in physio questioning your life choices.
We insure our homes, cars, pets, and even phones, yet we often forget to protect the one thing that pays for it all, our income.
If you had a machine printing $100,000 a year, you’d insure it, right? Well, that machine is you. And just like that trampoline incident, you never think something will go wrong, until it does.
Income Protection isn’t paranoia; it’s smart planning. Because when life pulls the rug out, the cost of doing nothing is always higher than the cost of being prepared.
The “She’ll Be Right” Mindset (And Why It’s a Bit Risky)
Australians love a “she’ll be right” attitude, it’s practically in our DNA, but when it comes to protecting your income, that mindset can lead to financial disaster.
Imagine you’re a property investor juggling mortgage repayments and maintenance costs, or a sole trader covering every business expense. Now picture an illness or injury forcing you out of work for months. Without a steady income, how long could you keep up? The stats tell a somber story:
- 45%of Australians have one month’s worth of savings or less with just 23% being able to last last six months or more¹
- Centrelink’s JobSeeker payment is approximately $390 a week², while the average mortgage repayment is over $900 per week³. Renters don’t fare much better, with capital city rent ranging between $570- $775 per week⁴.
Without a safety net, losing your income doesn’t just mean tightening your budget, it could mean falling behind on repayments, defaulting on loans, or selling assets at a loss.
Hoping for the best isn’t a plan. Without financial protection, one setback could undo years of hard work.
Enter: Income Protection, Your Financial Safety Net
This is where Income Protection Insurance comes in. It’s not about expecting the worst; it’s about ensuring an income loss doesn’t derail your financial future.
How does it work?
- Income replacement – Covers up to70% of your pre-tax income, paid in monthly instalments.
- Flexible benefit periods – Choose cover from 1 year, 2, 5 or 10 years, or to age 65, depending on the insurer.
- More than salary protection – Some policies cover rehabilitation or retraining costs, helping you get back on your feet.
Still unsure? Ask yourself:
- If you couldn’t work for six months, how would you cover rent, mortgage, or bills?
- Would you need to drain savings, rack up credit card debt, or sell assets?
- Could your family maintain their lifestyle without your income?
If these questions make you pause, it’s worth considering a plan. Because while we all hope for smooth sailing, life has a way of throwing storms our way, and when it does, Income Protection ensures you’re not left sinking.
Not All Income Protection Policies Are Created Equal
So, you’re thinking about Income Protection, smart move. But before you dive in, here’s something to keep in mind: not all policies are built the same. The right plan for you depends on a few key factors, including how long you want coverage, what percentage of your income you’ll receive, and how you structure your policy.
Tax Deductible? Yes, If You Do It Right
One of the biggest mistakes people make is not holding their Income Protection policy in the most tax-effective way. If you take out a policy personally, your premiums are tax-deductible in your individual tax return, meaning you can claim them as an expense, helping to reduce your taxable income.
However, if your policy is bundled into your superannuation, those tax benefits may not apply, and payouts could be more restrictive. Understanding the tax side of things could mean thousands of dollars saved over time, so it pays to get it right.
A Smarter Way to Protect Your Income
At TaxTank, we believe your money should work for you, not the other way around. That’s why we’ve partnered with NobleOak, a multi-award-winning Australian insurer known for competitive premiums, transparent policies, and no hidden surprises, including zero brokerage fees.
What’s in it for you?
- Special Benefits: Enjoy special offers for TaxTank members, ensuring you get value-driven coverage.
- No Brokerage Fees: Unlike many insurers, NobleOak offers direct-to-customer policies, meaning no unnecessary middleman costs, just straightforward, cost-effective protection.
- Transparent, No-Fuss Cover: No industry jargon, no upselling, just clear, reliable coverage designed for Australians.
Protection + Tax Deduction? That’s a Win-Win
Even better, you can generate a quick quote with NobleOak directly from your TaxTank dashboard, secure your cover in minutes, and instantly track your tax position once it’s paid.
And because we love a good tax perk, this is one of the rare cases where the ATO actually helps you keep more money in your pocket. (Of course, if you ever need to claim, they’ll be right there to tax your payout like regular income… but that’s a conversation for another day.)
So why wait? Protect your income, maximise your deductions, and stay ahead of life’s curveballs.
First month free. Real-time quote. No fuss.
We’ve partnered with NobleOak to cut the crap, keep the cover, and bring you life insurance that’s actually worth your time.
Want access to exclusive perks like this?
Our partnership with NobleOak is only available to TaxTank subscribers. If you haven’t jumped in yet, now’s the time. Start your free trial today and unlock life insurance that actually has your back (without the BS).
¹Saving account statistics December 2024 (Finder.com.au)
²www.servicesaustralia.gov.au
³www.loans.com.au. March 2025
⁴www.domain.com.au March 2025
Important Information –NobleOak Life Limited ABN 85 087 648 708 AFSL 247302 is the issuer of NobleOak life insurance products. The information contained is of a general nature only and does not take into consideration your objectives, financial situation or needs. Before making a decision to purchase or continue with a product you should read the relevant Product Disclosure Statement (PDS), Target Market Determination (TMD) and Financial Services Guide (FSG) and consider this information having regard to your own objectives, financial situation and needs. If you are considering replacing an existing life insurance policy you should consider your circumstances, including continuing the existing cover until the replacement policy is issued and cover confirmed.
