Australians Could Struggle Without Income Protection
In 2011 there were 34,056 income protection claims worth more than $1 billion made in Australia. Yet many people don’t bother purchasing income protection insurance, which provides cover if you fall sick or are injured and allows you to continue receiving a regular wage. That income is something many people would struggle to survive without, particularly if they have a home loan or large debts.
The Financial Services Council's Lifewise awareness campaign spokeswoman, Holly Dorber, says Australians are too laid-back when it comes to covering their income, but without a regular wage coming in they would be unable to make ends meet. She said the “she’ll be right” attitude could prove costly. But purchasers need to be aware that income protection insurance policies can differ greatly. Cover periods can be as little as two years or up to the age of 70, and waiting periods can also vary, often from 30 to 90 days.