Income Protection Cover

Income protection is an ongoing benefit paid to the insured person in the event they cannot work due to partial or total disability for a specified time. In Australia, you can apply for up to 85% of your pre-tax income to protect you and your family when you need it most.

What is income protection and how can it help Australians like me?

As many as one in three households in Australia are living pay check to pay check. This means that if they were unable to work because of illness or injury (partial or total disability), they would not have enough savings to get by. More shocking still, less than a third of Australians have income protection plans. By ensuring you have a sufficient income protection plan, you are protecting your most important asset – your ability to earn.

The amount of income protection you require depends entirely on you and your family’s monthly expenses and living costs. Most people take out additional cover to protect themselves in the result of an illness or injury, or to safeguard their superannuation and retirement savings. The amount of benefits you receive differ if you receive sick leave, worker’s compensation, or social security payments, such as Centrelink.

It is important to work out how much income protection you may need. The best way to do this is to prepare a budget. This will help you see your monthly costs and what income you will need to replace to meet your living expenses. Don’t forget to consider making payments to your superannuation.

You may require help deciding if you need income protection insurance. Contact us and speak to one of our friendly financial advisors for more information.

What are the benefits of income protection in Australia?

In Australia, you can receive up to 85% of your pre-tax income if you are unable to work due to a partial or total disability for a specified time. This cover will ensure that you and your family’s finances are secure if something unexpected happens. While covered with income protection, you will receive monthly payments to help you cover your family’s costs if you find yourself out of work.

These payments can help you:

  • Cover daily living expenses
  • Cover personal loan, mortgage and credit card repayments
  • Prevent you exhausting your hard earned cash savings
  • Prevent you from relying on Centrelink, or other social security assistance

It’s important to note that even if an income protection claim is successful, benefit payments will not begin straight away. There is always a waiting period in which no benefit is available, so make sure you choose an appropriate waiting period when selecting your income protection plan. While shorter waiting periods are better for you, plans with longer waiting periods come with a cheaper premium. You also need to consider your benefit period. This is the amount of time you will receive payments. Plans with longer benefit periods will have higher premiums.

If you and your family are reliant on your income, you should contact us to speak with a financial advisor about income protection today. Our experienced team can assess you and your family’s personal situation and recommend a suitable income protection policy for you. We will talk you through the benefits of stepped and level premiums, and help you choose the right amount of cover.

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“Our advisers get to know you and will determine the sum of cover you and your family would need in the event of death.”
Aleesha Edmonds, operations manager

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