Which of the following statements about the ‘Life Insurance’ section of the lecture material are TRUE:

1. If income protection (or salary continuance) is taken out inside superannuation, it can be cheaper than a similar policy taken outside of superannuation. However, if taken outside of superannuation, the premiums are often tax deductible and there may be less of a problem from losing benefits when transferring between different superannuation funds.
2. Income protection can replace a portion of a person’s income if they have an accident or illness that prevents them from working. After the accident or illness occurs, the person can nominate whether to wait between 14 and 90 days until the benefit starts. They can also decide on a benefit period of between 2 years and all the way until age 65.