Hi questionmark.

In the event that you become unemployed, will the amount received from this policy be lower than your usual income level?

Hi,
Yes, the income from insurance will be lower but based on my calculation the Income Supports might cover the difference. I might be wrong... woyld I be qualified for that if I have unemployment insurance

Hi questionmark.

There are some means-tested benefits which I think can be affected by having another source of income. Other benefits are not means-tested.

Overall the outcome would usually be that your income would still be reduced one way or another. The system is structured this way as otherwise people would have little incentive to return to work.

That reduction would usually eat straight into disposable income. There could be off-setting factors I guess, for example if someone had been paying a lot of money for their work commute.

If you feel that you can afford to maintain the payments then there should be no problem in doing so, questionmark. Income from an insurance policy is not classed as benefits and therefore can be used for your contribution payments.

However, as Trust Deed Assistant points out, if your affordability reduces due to unemployment then you may not be able to manage to continue paying. In this circumstance your trustee should reduce what you are expected to pay accordingly.

Dear Kevin and Amy. Thank you for claryfing this issue.