Protecting your income: the insurance that matters most

5 chapters·16 min·action plan·mastery check

Chapter 1 of 5

The idea

If you earn $35,000 for 35 years, your future earnings are worth over $1.2 million.

The main types

Income protection pays a monthly amount if illness or injury stops you working. Life insurance pays a lump sum to dependants if you die. Critical illness pays a lump sum on diagnosis of specific conditions. If others rely on your income, income protection and life cover usually come first.

Predict first

Which is more likely during a working life: a long illness stopping work, or dying before retirement?

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