16th December, 2014

Australians leaving their income at risk

How confident are you about your ability to continue working without interruption and provide for your family over the years to come?

While it's good to be optimistic when working in a trade, it pays to be realistic about your health and wellbeing. With thousands of injuries reported every year, there is a chance that an accident, illness or injury could disrupt your ability to work.

Even if you were able to return to work within a few weeks or months, the time spent not earning can have a significant impact on your finances – with rent, mortgages, groceries, utilities and other expenses becoming a significant burden.

Rather than financial strife, it is important to ensure you, your family and your assets are protected even when you are unable to work.

This is where Tradesman Income Protection Cover comes in.

With this policy, you can expect to receive up to 75 per cent of your usual income if you are ill or injured. This includes partial payments if you are able to return to work in a part-time capacity. Additionally, this cover protects you at any time of the day or night – and any day of the week.

However, a study published on November 5 by insurance provider TAL has found that many Australians are putting their family and assets at risk by not taking out enough life-related insurance.

Underinsurance a real problem in Australia

More than half of all Australians (56 per cent) admit they do not have enough cover to protect themselves or their family in the event of an illness, injury or death.

At the same time, of the 44 per cent who believe they do have enough cover, many are relying on a single life insurance policy. This is contributing to the underinsurance currently affecting many households, as life cover may not provide in every scenario.

For instance, some life insurance policies do not cover for incidents that result in short-term disabilities. This could leave you struggling to stay afloat if you were suddenly unable to perform your job but still expected to pay the bills.

This is a serious concern, as more than 60 per cent of Australians can expect an injury or illness to keep them off work for more than one month throughout their lifetime. One-quarter will also be disabled for more than three months, according to the 2007 Australia & NZ Disability Income Experience report.

Fortunately, you can talk to Trades Insurance for more information on income insurance or for advice on life insurance, estate planning and business succession. Our life insurance advisors can help you create a policy that suits you and your family, offering real coverage for real life circumstances.

Author: Murray Bruce