Protecting Personal Income

You only have to read today’s newspaper to see how events that happen in a moment can change people’s lives forever – for good and bad. That’s why it’s so important that you take steps to protect your personal income and business expenses should the unexpected happen.

Statistics show that one in three Australians will suffer a disability lasting three months or more during their lifetime.* And there’s no doubt that the inability to work due to illness or injury can have serious financial effects on any household or business.

Income protection insurance can generally provide cover for replacement of up to 75 per cent of your income if you are unable to work due to illness or injury.

Often, you can include a business overheads component, which can also be taken as a stand alone cover. This can help cover many fixed operating expenses of the business where you are unable to work through sickness or injury. Premiums are usually tax-deductible.

* Source: Institute of Actuaries – Report to the Disability Committee, May 1995

Important information about advice
The advice on insurance and superannuation is provided by CommInsure and has been prepared without considering your objectives, financial situation or needs, you should, before acting on the advice, consider its appropriateness to your circumstances. View CommInsure's Financial Services Guide (PDF 33kb).