Income Protection – Is It My Decision or My Employer’s?


An income protection policy is designed to pay you out a monthly benefit to replace your income, if you become unable to work due to an injury or illness. You can be paid up to 85% of your income from an income protection policy.

This insurance comes in handy if you or your family rely completely on your income to support your lifestyle; it will protect your most important asset, in the best possible way.

If you have just started working, you might be wondering if your employer provides income protection or not. The answer is some do but many employers do not provide you with income protection insurance. Income protection is most likely your decision, not the employer.

Income protection is beneficial for all age groups, and people working in every sector, even if you are self-employed.


Even if you are self-employed, you need to think about your future and that future needs to include income protection insurance. Credit: Unsplash


As an employee, if you live in Australia you will get worker’s compensation (unless self-employed), but to claim this you must be injured or ill as a direct result of your job. This is not the case with income protection insurance, your illness or injury does not have to be from your workplace or job, to make a claim.

Here are a few reasons why most Australians purchase income protection insurance:

  • Income protection will help you paying your debts, such as your mortgage, even if you don’t have income. It can ease the burden of managing your finances.
  • With income protection insurance, you can focus on your recovery without having to worry about expenses.
  • This insurance is also a great option for those who don’t wish to change their lifestyle when they are unable to work. Income protection insurance will minimise financial disruption so that you can maintain your quality of life.
  • Uncertainty is also one of the main reasons why people get income protection cover. The risk of diseases such as a stroke or cancer are significant, and we cannot shy away from the possibility.

Some employers may provide income protection as a part of an attractive welfare package – because the benefits of income protection insurance are undeniable.

Employees are the greatest asset within a company, and many give years of faithful service to the organisation. Which is why some employers will offer employee benefits such as income protection.

Now that group income protection insurance is getting popular; it is easier for employers to protect their employees. Group income protection is also a cost-effective option; the premiums are lower and covers employees 24 hours a day.

By getting group income protection insurance, they can continue to pay injured employees after sick leave expires. It is also a powerful tool to assist in the attraction of your company to future employees and to keep your existing, valued employees.

If your company offers income protection insurance, then you don’t have to worry about it yourself. However, if they do not it is the right time to get yourself an income protection policy.

If you are an employer, you should consider getting group income protection for your employees now. Protecting valuable employees against illness and injury is essential to strengthening the partnership with employees and their families. This will also help you in increasing productivity and loyalty.

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.