ILLNESS CAN TAKE A TOLL

It doesn’t pay to assume “it won’t happen to me”. A survey by the Melbourne Institute found the most common “major life event” reported by 15.7% of women was a family member experiencing a serious illness or injury. Close to one in 10 (8%) men report being seriously injured or ill each year. The high potential for illness and injury makes income protection insurance a must, especially if you have a family and/or significant debts such as a home loan. Remember, too, accident or illness outside work isn’t generally covered by worker’s compensation insurance. You may have some level of income insurance through your super (don’t bank on this – be sure to check) but it may not be enough. A 2015 report by Rice Warner found Australians are collectively underinsured by a massive $3435 billion when it comes to income protection cover. The good news is that our winners show how affordable income protection insurance can be, and the premiums on income insurance are usually tax deductible, which helps to reduce the cost.