St George Bank's financial advice arm Asgard Wealth Solutions (Asgard) announced yesterday it planned to introduce extended income protection as part of its superannuation product range.
The move comes just months after the Australian Taxation Office ruled that insurance premiums for those suffering long term injuries were tax deductible right up to the age of 65.
Previously insurance premiums were only deductible for two-year benefit periods.
Asgard Wealth Solutions chief executive Geoff Lloyd said the introduction of the extended income protection would help tackle Australia's yawning underinsurance gap.
"80 per cent of working Australians are currently underinsured when it comes to personal insurance and we are making it easier for them to better protect their greatest asset - their income," he said.
"Australians cannot continue to overlook personal insurance. They are taking a big financial risk for themselves and their families if they lose their ability to earn and are not adequately covered."
Salary continuance replaces up to 75 per cent of a person's monthly income if they become disabled through sickness or injury and are unable to work.
Asgard will offer a level of cover between $1,000 and $20,000 per month with 30, 60 and 90 day waiting period options.
The changes will come into effect from October.
