Have you ever thought about what would happen to your household if your income stopped tomorrow? For many Australians, it’s a terrifying question—and one that’s often ignored until it’s too late.
Whether it’s due to illness, injury, or unexpected death, losing the ability to work can be financially devastating. And while we all hope “it won’t happen to me,” the truth is, 1 in 3 Australians will be disabled for more than 3 months before age 65 (Rice Warner, 2020). That’s not a maybe—it’s a statistical reality.
What’s the Cost of Doing Nothing?
Let’s look at a typical case:
Case study – Mark, a 45-year-old carpenter
Mark was self-employed, earning $90,000 a year. Fit, healthy, and never had a day off sick in his life—until a car accident on the way to a job site left him with a broken hip and several months of rehabilitation.
Mark didn’t have income protection. He thought it was expensive and figured he’d be fine.
The result?
- 4 months without income
- $17,000 in lost wages
- A $6,000 personal loan to keep up with mortgage payments
- Strain on his relationship due to financial pressure
- Had to return to work earlier than medically advised
Mark’s story is far too common—and avoidable.
What Insurance Actually Does for You
Personal insurance isn’t just a product—it’s a plan B when life goes off script.
Here are the main types of cover that can protect you and your family:
- Life Insurance: Pays a lump sum if you die or are diagnosed with a terminal illness. Helps your loved ones clear debt, pay for living expenses, and maintain their lifestyle.
- Total and Permanent Disability (TPD): A payout if you’re permanently unable to work due to illness or injury.
- Income Protection: Replaces up to 70% of your income if you can’t work due to injury or illness.
- Trauma (Critical Illness) Cover: A lump sum if you suffer a serious illness like cancer, stroke, or heart attack.
The Government won’t save you
Many people assume Centrelink will step in—but the reality is sobering. The maximum Disability Support Pension is around $1,100 per fortnight (as of 2024)—barely enough to cover groceries, let alone a mortgage or rent, car loans, kids’ school fees, and everyday bills.
Personal insurance means you don’t have to rely on hope or government support. You take back control.
But Isn’t Insurance Expensive?
It doesn’t have to be. The cost of a tailored insurance plan can be less than what you spend on coffee each week. The key is having the right structure—possibly inside superannuation, or adjusted to suit your stage of life and financial position
You Don’t Need to Work It All Out Yourself
This stuff can be complicated—but you don’t have to figure it out alone. As a personal insurance specialist with over 30 years experience, I’ve seen the difference proper planning makes in people’s lives when it matters most.
Ready to Protect your family’s financial future?
Let’s start with a 15-minute obligation-free call. Whether its Personal Insurances or Health Insurances, at Catterall Wealth Solutions using our simple and transparent process we can identify any gaps and explore affordable options tailored to you. We help families in Melbourne, Redcliffe, Scarborough and surrounds navigate these important decisions with confidence. No jargon, no pressure—just clear advice and support tailored to your needs.