Reviewing situation since split, how do you calculate income for income protection insurance (IPI) as a single parent sole trader?
So going thru and amending things like my super beneficiaries, my will and looking at insurance thru my super. I’ve recently returned to work as a contractor for an NFP working an agreed amount of hours at an agreed rate weekly, and I invoice them monthly. They the pay my super.
I’m having trouble wrapping my head around how to accurately and honestly determine income for the specific purpose of income protection insurance.
Previously when employed was $95k PA so IPI was $70k but I’m unsure as when declaring income to Centrelink for my SPP, I’ve had to do a profit/loss, depreciation report etc which obviously factors business expenses, so overall “income” is a lot less than amount invoiced and remitted against once these expenses have been factored. So going off that, my total annual taxable income would only be about $13k (only 12 hours a week, still have little kids not at school) but for the purposes of IPI, is that accurate?
So is IPI even worth it in this situation and build up emergency fund solely for this purpose and buffer instead?
Not sure who to ask or talk to or what I’m even asking exactly without sounding like a moron, but that ship has prob already sailed.