Income protection: Why taxable losses are not the right advice

This is a case of following the bouncing ball. So stay with me.

Yes, there are some valid reasons to have a loss of earnings, either income is challenging to prove, or you have a significant passive income that impacts the ability to place any coverage.

The reality for the majority, employed or self-employed, is an agreed value claim is more in hand than the loss of earnings or indemnity after tax.

One of the other arguments over the years has been that it should be taxable because the IRD will change the rules. Rubbish, 20 years of postulation on this, and the IRD has remained virtually silent.