3 reasons why entrepreneurs need income protection

Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
Our authors
, updated on November 25th, 2021       

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Entrepreneurs work, dream and play hard. The constant buzz of keeping your business going in order to reach places you want it to reach is enthralling. However, being an entrepreneur or a small business owner is synonymous with risk taking. Income protection is a safety net for when you take your famous leaps of faith that doesn’t quite make you reach the other side of your goal. It is there to support you and your family. We got three reasons why every entrepreneur needs income protection:

It guarantees the constant ebb and flow of your quality of life

Australia is a home of more than 2.1 million small businesses. It can be a mission to make yours stand out. Just because your business is experiencing a few knocks on the foundation doesn’t mean your whole life has. If there is one thing you can be assured of is that your finances will be covered no matter what happens to you. It is by your side in sickness and in health…literally. You can get up to 75% of your gross earnings.

Spend less time worrying and more time making your dream a reality

Bills are a part of life, but nothing makes them appear to be larger than life when you suddenly lose a flow of income. Income protection is there too remove one less worry by ensuring that you and your family are covered. Things such as debts, mortgage bills, car loans, credit card debts, you name it, will be covered.

When it comes to your business plan contracting a serious illness or injury is the last thing on your mind. It is something you probably have in the back of your mind that could possibly happen later in life. Not in the prime of your life. This is a false hope that can cost you dearly. Getting income protection will ensure that it is business as usual should you fall ill or get injured, and are unable to work. It will work for you while you take your time to recover.

Even superheroes have their weaknesses

Things could be going well for you right now. You have your business growing from strength to strength, your finances are flexing hard muscle, and your health appears to be in tip top condition. Nothing can stop your moment, especially if you are still a young buck in the game…right? This could be a misconception. Anything can happen in a blink of an eye if you fly too close to the sun.

Safe work statistics Australia released research on the number of fatalities that have occurred in the work environment between 2003 and 2015. 65% of worker related fatalities involved vehicles, of which 39% were due to a vehicle collision on the public road. It could happen to you. By having income protection, you can still cover your expenses and your family. Having no income protection is a risk that will not benefit you or your business in the long run. Whether you are planning your next big move or are currently running a very stable business income protection is for you.