Income Protection Calculator

Use the calculator below to work out how much income protection cover you can apply for.

Depreciation: Most Insurers allow us to add back depreciation to your Insurable income and each Insurer has their different allowance although most will allow depreciation to be added back except were depreciation related to capital items used with the primary purpose of generating that income or limited to 10% of the gross turnover. Either way as Brokers we will shop and negotiate this with various Insurers to achieve the best outcome for you.
Salary / Director Fees: The wages and or fees you pay yourself.
Superannuation: You may include any superannuation contributions you paid yourself in your insurable income.
Income Split – Salary: Income splitting allows the income – generating individual to pay income, generated by their own personal exertion, as a wage or super contribution to his or her spouse for legitimate tax planning reasons. A quick test here is, if you stopped working what income would stop. If any of that is being split to a partner it can be added back.
Income Split – Super: Income splitting allows the income – generating individual to pay income, generated by their own personal exertion, as a wage or super contribution to his or her spouse for legitimate tax planning reasons. A quick test here is, if you stopped working what income would stop. If any of that is being split to a partner it can be added back.
Motor Vehicle: You may include any Motor Vehicle expenses paid to yourself in lieu of income or wages. E.g. the use of a luxury car for business purposes when a standard car could have been used. The difference can be added back. Some insurers will add the entire cost back if you are not claiming the expense under your business expenses policy.
Loss on Sales of Asset / Bad Debts : You may include extraordinary losses on Sales of Assets (usually occurs on Sale of Motor vehicles sold less than their depreciated value) and Bad Debts.
Domestic Interest: You may include any interest expenses incurred to generate your Business income.
Fines – All fines incurred e.g. parking fines, speeding fines etc.
I am a employee: Enter you gross annual income before tax is deducted. For full definition of income see Insurable income explained.
Insurable Income Explained: is the income you earn by your own personal effort (i.e., will cease if you are unable to work)before tax is deducted. It includes your total salary package, including salary, wages, fees, packaged fringe benefits, regular commissions and bonuses, overtime payments and superannuation. If you are self employed, e.g. Sole Trader, a partner in a business or an employee of your own company, insurable income also includes: Your share of net business income (after deduction of all business expenses ) directly due to your personal exertion, but before tax plus any add backs. Insurable Income does not include investment, interest income or Business income that you will continue to receive if you are unable to work.
Most Insurers allow you to add back items to your Insurable income as detailed in the boxes below (This is not a comprehensive list). For a accurate assessment please forward a copy of your Business Financials for the last 2 years.
Donations / Gifts: You may include any Donations or Gifts as this is really your choice on how you are spending your money and can be added back.
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Annual Gross Income
$
I am an employee

I am self employed



 

Insurable Income Explained


Employees:


The definition of Insurable Income is the income you earn by your own personal effort (i.e., will cease if you are unable to work) before tax is deducted. It includes your total salary package, including salary, wages, fees, packaged fringe benefits, regular commissions and bonuses, overtime payments and superannuation.

Insurable Income does not include investment or interest income unless you are Investment stock trader.

This can be a complex area so speak to one of our advisers who will be more than happy to help.

 

Self Employed:


For the self employed, e.g. Sole Trader, a partner in a business or an employee of your own company, the income definition most insurers use is the same as above but also includes:

Your share of net business income (after deduction of all business expenses ) directly due to your personal exertion, but before tax plus any add backs. Insurable Income does not include investment, interest income or Business income that you will continue to receive if you are unable to work.

Again this can be a complex area so speak to one of our advisers who will be more than happy to help.

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