When is the best time to take out Income Protection Insurance

By AAMI 06 October 2021

There are stages in life when we tend to evaluate how everything is going. Changing jobs, purchasing a new home, starting a family and looking to retire, just to name a few. It’s at these moments in time when we consider what protection we have and what we need, and why we should be looking to protect ourselves and our loved ones as much as possible.

For many Australians, figuring out how to cover expenses such as rent or mortgage, bills and groceries can get complicated without a steady income. It can get even more stressful if you are providing for a family.

Knowing what type of insurance you need can be tough. To help, we’ve put together some information around a few of the key life stages and called up some risks you may need to consider to ensure you are set up correctly to protect yourself and your lifestyle.

Changing jobs

Whether you’re moving to a different company, being promoted or quitting the nine to five to start your own business, a change of job may mean a change of income level, and you may require more protection. As you progress through life, changing your financial circumstances means ensuring you are protected to the level of cover you require. You’ve likely become accustomed to a certain income and the lifestyle that affords. Without income protection, do you have the peace of mind that you’ll be able to continue that lifestyle should you be unable to work due to sickness or injury? Remember, no one is bulletproof, no matter how fit, healthy and young you are.

Starting a family

Expanding your family, whether that’s getting married or having children, is an excellent time to take out income protection. One of the most important things to remember when you get married or have children, is that other people now rely on your income (and you theirs) to live the lifestyle of your choosing. On top of this, the costs of having a baby are huge and they only grow as your child gets older. According to an Australian Government study parents can expect to pay, at the bare minimum $140-$170 a week per child. Consider the cost of childcare, schools, clothing and extracurricular activities - what will happen if you can’t cover those?

Purchasing a home

Again, purchasing a home is a big moment in your life. Whether it’s your first or your fifth, it can be a larger (or smaller) mortgage, depending on whether you’re upsizing or downsizing. This will have a huge impact on your everyday expenses and you may need more cover to ensure you can cover the bills.

Taking out a policy

Insurance is not a set-and-forget purchase. At every life stage, it’s important to consider what kind of insurance you need and how you can protect your loved ones should you be unable to work due to sickness or illness.

Whether you’re starting or changing jobs, getting married, buying a property or starting a family, it’s always a good time to take out income protection.

Remember, one of your biggest assets is your ability to earn an income. At every milestone in your life, it can be beneficial to reassess what insurance you have to provide you and your family peace of mind if you’re unable to work due to illness or injury.

If you need assistance deciding what level of income protection is right for you at your current life stage, get in touch with the AAMI team today. Or, grab a quick quote online.

AAMI Life Insurance products, other than in some circumstances the Redundancy Benefit, is provided by TAL Life Limited ABN 70 050 109 450 AFSL 237848 (TAL Life) which is part of the TAL Dai-ichi Life Australia Pty Limited ABN 97 150 070 483 group of companies (TAL). TAL is not part of the Suncorp Group. TAL uses the AAMI brand under licence from the Suncorp Group. Any advice on this page in connection with the Life products is general in nature and is provided by Platform Ventures Pty Ltd ABN 35 626 745 177 AFS Representative Number 001266101 (PV). PV is part of the Suncorp Group and an authorised representative of TAL Direct Pty Limited ABN 39 084 666 017 AFSL 243260 (TAL Direct). General advice does not take into account your individual needs, objectives or financial situation. Before you decide to buy or to continue to hold a Life Products you must read the relevant Product Disclosure Statement. The Target Market Determination (TMD) for the product is available on our website.