Life Insurance Australia :: Articles

Protect Your Lifestyle With Income Protection Insurance

How can income protection insurance safeguard my lifestyle?

Protect Your Lifestyle With Income Protection Insurance

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Income protection insurance can be a valuable product if you have mortgage repayments or credit card or loan repayments to meet each month. No one knows what is around the corner and if you should become unemployed or have an accident or illness then you could be left struggling.
Income protection insurance can be a valuable product if you have mortgage repayments or credit card or loan repayments to meet each month.

No one knows what is around the corner and if you should become unemployed or have an accident or illness then you could be left struggling.

If you can get back to work very quickly then savings could get you by; however, if you should need months away from work to get back on your feet then savings would soon run dry.

A far better solution that does not have to be expensive is taking out an insurance policy that covers your income.

There has been much bad publicity surrounding payment protection products, of which income protection is one.

However, if you stick with a specialist in protection insurances you can be sure that you will be offered a quality product.

You can also make good use of the information that an independent specialist will make available on their website.

But by far the biggest benefit of going with an independent provider is the low premiums that are charged for cover, which will be based on your age and the amount of your income you wish to cover.

A specialist will allow you to insure up to a certain amount of your monthly income.

Income cover would usually begin to pay out tax-free amounts from between day 30 to 90 of being classed as unfit for work or unemployed.

The exact cover start day is stated in the terms and conditions of the policy, as is the length of time that the policy will protect you. This can be anything between 12 and 24 months to age 60, 65 or even for life, depending on the individual provider.

While in the majority of cases this would be enough time to recover and start earning again, occasionally the policy ends before the policy holder returns to work and this has to be considered.

You also have to be aware that there are certain terms and conditions that could mean income protection would be useless.

Exclusions have to be checked thoroughly.

Some are common to the majority of polices, while others are included by specific providers, so you have to compare individual terms and conditions that come with quotes when shopping around for the cheapest policy.

Working on a part-time basis, working for yourself, being retired or suffering from a pre-existing illness could all stop a policy being suitable.

However, exclusions are not clear cut.

Those who suffer from a pre-existing condition could be eligible to take out cover if the illness has not occurred within two years.

Self-employed individuals who have to stop trading on a permanent basis through involuntary reasons could also benefit.

A specialist provider will give the information in plain English so you can make an informed decision before tying yourself down to something that is not suitable.

Income protection insurance can give peace of mind and the financial security of being able to concentrate on getting better or finding a new job, but you do have to buy cover with consideration.

Published: Tuesday, 26th Feb 2008
Author: 74


Life Insurance Articles

Life Events That Should Trigger a Life Insurance Review for Aussie Families
Life Events That Should Trigger a Life Insurance Review for Aussie Families
Life insurance is a cornerstone of financial planning for Aussie families, offering protection and peace of mind. But what happens when the bustling flow of life brings changes? This is where a life insurance review comes into play. A life insurance review is a thorough analysis of your existing policy to ensure it aligns with your current life circumstances and financial goals. - read more
How Pre-Existing Conditions Influence Life Insurance Premiums
How Pre-Existing Conditions Influence Life Insurance Premiums
When it comes to life insurance, a pre-existing condition refers to any medical condition or illness that you have been diagnosed with before applying for a life insurance policy. - read more
The Digital Age of Insurance: Keeping Costs Down with Online Quotes
The Digital Age of Insurance: Keeping Costs Down with Online Quotes
The horizon of the insurance industry has undergone a transformative shift with the advent of digital technology. With a few clicks, consumers can navigate the once-complex world of insurance policies from the comfort of their home. The digital landscape for insurance services offers unprecedented access to information, comparisons, and instant communication, fostering a more empowered insurance client. - read more
A Millennial's Guide to Life Insurance
A Millennial's Guide to Life Insurance
For many millennials, navigating the complexities of personal finance and future planning can feel like a bewildering journey. Among these financial responsibilities, life insurance emerges as a paramount consideration. More than just a safety net, life insurance can be the cornerstone of a sound financial strategy, providing peace of mind for both the policyholder and their loved ones. - read more
Understanding Life Insurance: How to Determine Coverage Amounts
Understanding Life Insurance: How to Determine Coverage Amounts
Life insurance is a cornerstone of financial planning, offering peace of mind to you and security for your loved ones. It's a contract between you and an insurance company: in exchange for regular premiums, the insurer agrees to pay a sum of money to designated beneficiaries upon your passing. This vital tool ensures that your family's financial needs can be met during an incredibly difficult time. - read more

Insurance News

Western Australia's Transport Sector Pushes for Enhanced Truck Licensing Standards
Western Australia's Transport Sector Pushes for Enhanced Truck Licensing Standards
29 Mar 2026: Paige Estritori
Western Australia's transport industry is urging the state government to implement more stringent heavy vehicle licensing requirements, aiming to bolster road safety and address concerns over inexperienced drivers operating large trucks. This initiative follows South Australia's recent reforms, which introduced tougher conditions for obtaining multi-combination (MC) licenses. - read more
Australian Road Transport Industry Grapples with Escalating Fuel Prices
Australian Road Transport Industry Grapples with Escalating Fuel Prices
29 Mar 2026: Paige Estritori
The Australian road transport industry is currently facing significant financial pressures due to escalating fuel prices, which have substantially increased operational costs for trucking businesses nationwide. This surge in fuel expenses is compounding existing challenges, including rising maintenance costs, land taxes, and insurance premiums, thereby squeezing profit margins and threatening the viability of many operators. - read more
Navigating Seasonal Risks in Australian Trucking: Insurance Considerations
Navigating Seasonal Risks in Australian Trucking: Insurance Considerations
29 Mar 2026: Paige Estritori
Seasonal variations in Australia present unique challenges for the trucking industry, influencing safety, operational efficiency, and insurance considerations. Wet weather conditions, increased holiday traffic, and heightened freight demand during peak seasons can all impact the risk profile of trucking operations, necessitating a thorough understanding of these factors to ensure adequate insurance coverage and business resilience. - read more
Australian Insurers Grapple with AI Disruption Fears
Australian Insurers Grapple with AI Disruption Fears
29 Mar 2026: Paige Estritori
In recent weeks, major Australian insurers such as Insurance Australia Group (IAG), Suncorp (SUN), and QBE Insurance (QBE) have experienced notable declines in their stock prices. This downturn is largely attributed to growing investor concerns about the potential disruption posed by artificial intelligence (AI) within the insurance sector. - read more
Australian Insurers Face Challenges in AI and Cyber Risk Readiness
Australian Insurers Face Challenges in AI and Cyber Risk Readiness
29 Mar 2026: Paige Estritori
Recent research indicates that Australian insurers are trailing their global counterparts in preparedness for emerging risks, particularly those associated with artificial intelligence (AI) and cyber threats. This preparedness gap has reached its widest point in four years, raising concerns about the industry's ability to manage these rapidly evolving challenges. - read more

Start Here !
life insurance
Apply now for your free Insurance assessment and price comparisons!

Start Here

Life Cover Amount:
Postcode:

All quotes are provided free and without obligation by a Specialist from our National Broker referral panel. See our Privacy Statement for more details.


Knowledgebase
Liability Insurance:
A type of insurance that provides protection against claims resulting from injuries and damage to people and/or property.