Loading...
Loading content...
Loading content...
Life insurance pays a lump sum to your beneficiaries when you die or are terminally ill. Income protection pays you a monthly benefit — up to 70% of your income — while you are alive but unable to work due to illness or injury. They are complementary covers that address different financial risks.
Financial advisers generally consider income protection the higher priority for working Australians, particularly those without dependants. The statistical likelihood of being unable to work for an extended period due to illness or injury is considerably higher than dying during your working years. Income protection addresses the more probable near-term risk. Once you have dependants or a mortgage, life insurance becomes equally critical.
Yes, and most financial advisers recommend holding both alongside TPD cover. Together they form a personal risk insurance framework: income protection replaces monthly income during illness or injury, TPD handles the capital costs of permanent disability, and life insurance protects your family financially in the event of your death. The right combination and level of cover depends on your specific circumstances — a broker or financial adviser can help you build the right structure.
CoverMy connects you with licensed Australian insurance brokers who compete for your business.
Compare Brokers