Insurance Tax Hacks
Looking to save on income protection or health insurance? Take advantage of these tax-hacks before end of financial year.
If you're in the market for any of these products, then make sure you equip yourself with these tax-tips to squeeze more value out of your purchase. Without further ado:
Hack 1: Prepay a years worth of income protection before 30 June
The cost of income protection is tax-deductible and many policies also offer a discount (e.g. one month free) if you pay for your premiums annually. So why not kill two birds with one stone?
How to do this hack
- Purchase a life insurance policy with an annual discount. For example, Virgin Money Income Protection offers one month free when you pay annually over the phone.
- Use cost of cover as a tax-deduction. The average premium for income protection over a year can work out between $400 - $1000. Give your invoice to your tax professional and see what type of deduction they can get you.
Compare income protection brands on Finder below
Hack 2: Get cash back on your health insurance
Your health insurance is eligible for a tax rebate - on extras, hospital and combined policies. You can also score some savings paying upfront. Here’s to get those bucks back
How to do this hack
- Claim the private health tax rebate. You can either claim this throughout the year by taking the reduced payment option or you can claim around 35% when you lodge your tax return. If you currently have health insurance and you're unsure if you've claimed, log into your account to see if you've already claimed - you should see it in your pricing plan.
- If you're looking to take out health insurance, it might be worth paying for a year in advance so you can claim your rebate upfront.
- Pay your year upfront for discounts. Many private health insurers offer an annual discount when paying upfront, it can save you an extra 5%.
DISCLAIMER: This article contains general advice and does not consider your own personal circumstances. It is not tax advice and the general nature of this material may not be applicable to you. You should obtain professional advice and verify our interpretation before relying on the information contained in our article.
About the authors
Maurice is a life insurance writer for finder.com.au who loves finding an answer to the question "Am I covered for ________?"
Maurice has also completed a Tier 1 Life Insurance and a Tier 2 General Insurance Certification under ASIC's Regulatory Guide 146 so he can provide general advice for life insurance and non-life insurance products.
As health insurance publisher, Alex is trying to make a confusing topic easy to understand. She moved to Sydney from the UK six years ago and her words have been published in various health and tech publications. When she's not digging into insurance policies, you'll find her triathlon training.
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