Is There A Minimum Income Threshold To Be Applicable For Income Protection Insurance In Australia?

 

Income protection insurance protects your most important asset – your income. Your income is worth protecting, but anything that involves your money usually comes with millions of questions.

Will I ever be unable to work? Will income protection insurance be worth it? Am I old enough to buy insurance? I don’t earn a decent amount of money; can I buy income protection insurance? – These are only a few questions out of hundreds.

However, you might not realise just how wise it is to invest in income protection insurance, until you find yourself in a situation without your income. Even if you know how essential it is to protect your income, many things may be stopping you from purchasing. One of those reasons is that you feel you as if don’t earn enough to be thinking about income protection insurance.

Thinking that you can only buy income protection if your income is high is a misconception. There is no such thing, and it does not matter how much you earn; you still can get income protection insurance.

It is easy to assume that if you have low income, you won’t be able to buy income protection insurance. However, income protection insurance has no such requirement, people up to the age of 70, any occupation and income are eligible to purchase an income protection policy, in most cases.

You get 75-85% of your income as a payment from income protection insurance, so it doesn’t actually matter how much you earn. However, you should always provide accurate income information, as there is no point in buying cover for a higher income than you don’t actually earn as you will only receive the maximum 85% of your actual income when claiming.

Having a low income is actually one of the most important times to ensure you are adequately and fully covered, because if you have to stop work for a long period of time due to illness or injury, you won’t have as much savings to keep you afloat without income protection insurance. This could have severe and damaging consequences to your finances. People with low or average incomes cannot build up savings the same way others can, to keep them in a good place financially when they are not working. Income protection is a great way to give you peace of mind that you have everything in place even if you cannot work due to injury or illness.

 

No matter what kind of work you do, income protection is a great option to securing your financial future. Credit: Unsplash

 

Get Expert Income Protection Advice

If you have been putting off buying income protection insurance because of your lower income, then it may be the time for you to revaluate your situation.

Speak with the income protection experts in Australia – Aspect Underwriting – to bust any income protection myths that may be stopping you from getting the service. You can also get income protection quotes online without going anywhere or getting stuck in an hour-long phone conversation. Aspect Underwriting offers the easiest way to protect your income by providing up to 85% (one of the highest percentages you can get in Australia) of your income if you cannot work due to illness or injury.

Mike Wallis

Mike has over 25 years experience, having spent his first seven years working as a Broker at Jardine Lloyd Thomson in Melbourne and in 2002 was transferred to JLT’s Accident and Health Department in London. For four years (2002 – 2005) Mike was a specialist A&H Lloyd’s Broker and during this time developed excellent relationships with the Lloyd’s A&H underwriting fraternity. In 2006 he returned to Australia in a senior broking position with overall responsibility for Placement Strategy, including the implementation of underwriting facilities and the various authorities granted by Lloyd’s. Mike was the underwriter at two specialist Underwriting Agencies prior to founding Aspect Underwriting in 2016.

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