When is the best time to get income protection?
8 October 2021
We go through many life stages as an adult. And in that journey, our income usually fluctuates as and when our lifestyle changes and different financial responsibilities come in. Whether it’s purchasing a new property, growing your family or looking to downsize once your kids have left the nest and become independent, each new phase of life brings a new set of challenges.
As you transition through these life stages, income protection might not be one of the key priorities that comes to mind. There are quite a few misnomers about income protection – such as ‘it’s only useful for the rich and those on hefty incomes’ or ‘that you don’t need it if you’re fit and healthy’. But these are myths that need to be busted.
Income protection is like your own personal safety net that comes to the rescue if you’re suddenly struck with an illness or injury and are unable to work. This can be especially stressful if you already have existing financial commitments, such as a mortgage to pay and other members of your family relying on your income. That’s why, no matter how old you are or what life stage you’re at, income protection is a worthy investment to consider.
Below, we look at some of these life stages and explore how income protection can come in handy.
A new job
A new job brings new possibilities on the horizon. But it also brings uncertainty. It usually takes a while to settle into the rhythm of a new role. There might also be changes to your pay, which in turn might impact your existing financial commitments. This is where income protection can help. Unexpectedly falling seriously ill or getting injured while starting a new role can throw a spanner in the works. Will you be able to protect your lifestyle in such a scenario? What about your loved ones who rely on your income? Income protection can help keep life going while you recover and become healthy enough to return to your job.
Starting a family
Having children is one of the biggest shared decisions that you take with your partner. This is also a good time to consider income protection, especially if you’re going to move to a single income while raising a child. It’s important to keep in mind that raising kids in Australia where the cost of living is high, along with added childcare costs and education costs is a significant long-term financial commitment. According to an Australian Government study, parents can expect to pay, at least $140-$170 a week per child. These costs, especially if you’re already paying off a mortgage can really add up. Have you thought about how will these ongoing expenses be paid if you’re unable to work?
Buying a new house
Property is one of the most important investments you’ll make in your life. Whether you’re a first home buyer looking to get your foot in the property market, an investor looking to add to your wealth portfolio, or looking to downsize as you transition to retirement, buying a new property is a long-term investment that you will be paying off on an ongoing basis. Wouldn’t you want the peace of mind and security that your mortgage repayments can be taken care of even when you’re unable to work due to illness or injury?
Getting income protection insurance
Income protection has something to offer everyone at every stage of life. It gives you an alternate stream of income to stay on top of most of your living expenses and maintain the lifestyle you’ve worked so hard to build for yourself.
Whether you’re young and single, with a partner looking to start your own family, or your kids have already left the nest, income protection is flexible enough to service your needs at your stage of life.
- How income protection can help you and your family in tough times
- What you need to know about life insurance & income protection
- Compare income protection policies
Suncorp Life Insurance products, other than in some circumstances the Redundancy Benefit, is provided by TAL Life Limited ABN 70 050 109 450 AFSL 237848 (TAL Life) which is part of the TAL Dai-ichi Life Australia Pty Limited ABN 97 150 070 483 group of companies (TAL). TAL is not part of the Suncorp Group. TAL uses the Suncorp brand (part of the Suncorp Group) under license. Any advice on this page in connection with the Life products is general in nature and is provided by Platform Ventures Pty Ltd ABN 35 626 745 177 AFS Representative Number 001266101 (PV). PV is part of the Suncorp Group and an authorised representative of TAL Direct Pty Limited ABN 39 084 666 017, AFSL 243260 (TAL Direct). General advice does not take into account your individual needs, objectives or financial situation. Before you decide to buy or to continue to hold a Life Products you must read the relevant Product Disclosure Statement. The Target Market Determination (TMD) for the product is available on our website.