When income protection insurance is no longer worth it

By Nicole Pedersen-McKinnon
Updated September 2 2017 - 9:48am, first published August 16 2017 - 1:05am

Hi Nicole, I understand the benefits of income protection insurance and have a policy outside of my superannuation (with Westpac) as the cover is more extensive and the premiums are tax deductible. As of last year, however, the year I turned 50, the cost is increasing substantially; 10 per cent last year and 8 per cent this year, resulting in a premium costing $4000. Obviously as one gets older the risk of making a claim increases, however, at some point, the cost will become unsustainable, particularly as I am looking at another 10 years of employment. Is the coverage and tax benefit worth the cost? Carmen, Frenchs Forest

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