Why you should insure your income.

Posted on 22/07/2025 by Nigel Cobb

Insuring your income is just as crucial as insuring your car and home. While car and home insurance protect you against physical damage or loss, income insurance safeguards your financial stability when unexpected events occur.

Your income is essential for maintaining your lifestyle, paying bills, and achieving long-term financial goals. If you're unable to work due to illness, injury, or job loss, having income insurance can provide a vital safety net.

Types of Income Insurance

  • Disability insurance: Replaces a portion of your income if you're unable to work due to illness or injury.
  • Life assurance: Provides financial support to your loved ones in the event of your passing away.
  • Annuities: Guarantees a steady income stream for a set period or lifetime, helping you protect against outliving your savings.

How to insure your income

  1. Assess your risks: Evaluate your financial situation, expenses, and income to determine the level of coverage you need.
  2. Choose the right policy: Select an insurance policy that aligns with your needs, such as disability or life insurance.
  3. Consider annuities: Explore annuity options to guarantee a steady income stream in retirement.
  4. Consult an adviser: Work with a financial advisor to develop a personalised plan for income insurance.

Benefits of Income Insurance

  • Financial stability: Ensures a steady income stream, even in uncertain times.
  • Peace of mind: Reduces stress and anxiety about the future.
  • Protection: Safeguards your financial goals and lifestyle.

By prioritising income insurance, you can create a more comprehensive financial plan and enjoy greater peace of mind.

Before proceeding it’s important consider how this strategy aligns with your overall financial planning goals and seek professional financial advice to explore the best options for your needs. Your Dentons Adviser can help you work out the right option for your personal circumstances.

 

Although every effort has been made to ensure that the information provided in this article is accurate and correct, the information provided does not constitute any form of financial advice. We recommend that you take financial advice before making any financial decisions.