If you are in the process of building a secure future for your family, it’s important to consider how you can protect that future. Like many other people, you may not be protecting your most important asset… your ability to earn an income.

If you were unable to work and earn a living, would you be able to cover your mortgage and living expenses? If the answer is no, then securing income protection insurance should be something you consider.

While 83% of Australians have insurance for their car [1], only 31% insure their ability to earn an income with income protection insurance [2].

Whilst you may think it won’t happen to you, sadly, statistics tell us a different story. Women face a 25% risk and men a 40% risk of suffering a traumatic illness between the ages of 30-64 [3]. Further, 1 in 2 Australian men and 1 in 3 Australian women will be diagnosed with cancer by the age of 85. An estimated 145,000 new cases of cancer will be diagnosed in Australia this year, with this number expected to increase to 150,000 by 2020 [4].

A research White Paper indicates that 58% of survey respondents identified they could not survive for more than three months before needing to sell assets, if they were unable to work due to illness or injury [5].

If you have a lot to lose should you be unable to earn an income, now is the time to consider income protection insurance.

Income protection insurance usually pays up to 75% of your income in the event of an accident or illness, until you are able to return to work. You may also elect to cover some superannuation contributions, helping you to protect not only your current lifestyle but also your future.

There are many complexities associated with personal insurances, making it extremely important to seek professional advice to help you choose the cover that is appropriate for your circumstances, and to assist you in achieving your full entitlements in the event of a claim.

To find out more about creating a contingency plan for your lifestyle, I encourage you to contact our office on 07 3720 1299 or email admin@wealthfundamentals.com.au so we can help you secure your financial future.

Lane Moses Pty Ltd ABN 56 092 186 117 trading as Wealth Fundamentals and its advisers are Authorised Representatives of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357306.

The information (including taxation) contained within this document does not consider your personal circumstances and is of a general nature only - unless otherwise stated. Wealth Fundamentals strongly suggests that you should not act on it without first obtaining professional advice specific to your circumstances. This information is based upon our understanding of legislation at the time of writing. Such legislation may be subject to change. This publication cannot be reproduced in any form without the express written consent of the author.

[1] http://www.lifewise.org.au/facts-research

[2] TNS/IFSA Investigating Income Protection Insurance in Australia July 2006 http://www.lifewise.org.au/downloads/file/aboutthelifewisecampaign/2010_1220_Lifewisemediakit.pdf

[3] Gen Re Australia 2009. Australian Critical Illness survey 2008: a study of claims experience in 2001 to 2005.

[4] https://www.cancer.org.au/

[5] Zurich Insurance, Research Whitepaper, February 2014, ‘Australians and life insurance: misinformed, misinsured?’ http://www.zurich.com.au/content/dam/australia/advisers/Australians-and-life-insurance_Misinformed-Misinsured-booklet.pdf