Do I Really Need Income Protection?

Income Protection is arguably the most important type of insurance you can have — yet it's also the most overlooked. It replaces up to 70% of your pre-tax income if you're unable to work due to illness or injury, paying you a monthly benefit until you can return to work or until the benefit period ends.

Think about it this way: your ability to earn an income is your most valuable financial asset. If you're 30 years old and earning $100,000 a year, your future earning potential over the next 35 years is roughly $3.5 million. Would you insure a $3.5 million asset? Most people would — yet many Australians don't have adequate income protection.

The Australian Government's safety net through Centrelink provides a maximum of around $700 per fortnight for a single person. If your mortgage repayments alone are more than that, you can see how quickly things can unravel without proper cover.

Income Protection policies vary significantly in their terms, waiting periods, benefit periods, and definitions. Some policies are 'agreed value' (based on your income at the time of application), while others are 'indemnity' (based on your income at the time of claim). The difference can be significant, especially if your income fluctuates.

At EvolvU, we help you navigate these complexities and find a policy that genuinely fits your circumstances. We compare options across the market, explain the trade-offs in plain English, and make sure you're not paying for cover that won't actually protect you when it counts.