Protecting your income and why it’s so important

At Initiative, we are increasingly concerned about the number of clients who don’t have adequate levels of insurance, in particular, income protection insurance. Simply ask yourself, “If my income ceased tomorrow and I could not work for months or years, what would the impact be on my family? How would I pay for my weekly/ monthly expenses; the things I usually don’t give a second thought, such as groceries, mortgage repayments, rent and school fees?”

Without sufficient insurance in place, most of us would face financial ruin in such circumstances – but thankfully, it doesn’t have to be that way! Income protection insurance replaces up to 75% of your monthly income, allowing you to continue meeting your day-to-day living expenses until such time that you’re back on your feet.

While most of us make sure we have our cars, houses and our belongings protected, we often forget to do the same for our income – the one thing that pays for all others. So instead of worrying about the sacrifices you’d need to make if you lose your income due to illness or injury, you can look forward to the peace of mind that comes with knowing you’ll be able to cover your expenses – giving you the time to focus on your health and recovery.

We believe it’s essential that every working person has sufficient income protection insurance in the absence of an alternative risk management strategy. So instead of potentially jeopardising the financial plan you’ve worked so hard to put in place, why not support it?

If you’d like a complimentary review of either your existing or your required income protection insurance, please don’t hesitate to give us a call!

Did you know?

  • Last year, over $1.26 billion was paid out by Australian insurance companies for income protection claims alone.

  • 48,000 working Australians made an income protection claim last year and benefitted from having quality insurance cover. 

  • 83% of Australians say they have insurance for their car, however only 31% insure their ability to earn an income with income protection insurance.

  • About 640,700 people experienced a work related injury or illness—around 40% of these received no financial assistance.

  • 95% of Australian families don’t have adequate levels of insurance.

  • Income protection premiums are more affordable than you might expect and they are generally tax deductible.

  • You can also pay for income protection premiums from your superannuation if you prefer.

  • The features, benefits and costs of income protection insurance premiums are constantly evolving, so policies should be regularly reviewed.  

James Mulhearn CA – Director