How to protect yourself from becoming financially vulnerable?

Published on June 26th, 2020
  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

Fact checked

At Savvy, we are committed to providing accurate information. Our content undergoes a rigorous process of fact-checking before it is published. Learn more about our editorial policy.
Family mobile plan

At Savvy, our mission is to empower you to make informed financial choices. While we maintain stringent editorial standards, this article may include mentions of products offered by our partners. Here’s how we generate income.

Pay off your bills when you are not working

Not being able to go to work is due to circumstances that are out of your control can keep anyone up the night, especially when you have bills to pay. According to a study by Deloitte, 6 million Australians are at risk of not being able to pay off their household bills or put aside savings to help them when they need it the most. Having an income protection policy can help you take care of everyday expenses and debt that could affect your credit score.

Take care of your rehabilitation bills

Sustaining a critical injury or falling critically ill can be costly when it comes to paying off medical bills or going to a rehabilitation centre. This can have a huge impact on your loved ones who want to be there for you physically and financially. Having a policy in place can alleviate the stress of finding ways to help you recover. This can also be beneficial for people who have a spouse and want to hire someone to help them around the home.

A continued source of income

Having your salary cut off can be devastating, especially when you don’t have a backup plan. Being able to stay in control of your finances can get stressful when you have many responsibilities to take care of. Being able to have a continued stream of income is essentially when it comes to keeping any household afloat. Stressing over your finances can be the last thing that you need when you are on the road to recovery, which is why it can be beneficial to have a policy in place.

Get cover when you lose your job

Some circumstances are beyond your control and you could find yourself out of a job. According to the Australian Bureau of Statistics, unemployment increased from 4,600 to 672,100. Furthermore, research by Deloitte revealed that 29% of Australians were now less confident in their ability to retire comfortably by the time they reach 65 or even raise a $1,000 in a week. There are some insurers that offer policies that cover people who have become redundant, but it is vital to ask your insurer if they will be able to cover you for this before taking out a policy with them.

Protecting you and your loved one from becoming financially unstable by having an income protection plan can be one of the best things that you can do to protect your future financially.

Did you find this page helpful?

Thanks for your feedback!

This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.

The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.

Savvy is partnered with Compare Club Australia Pty Ltd (AFS representative number 001279036) of Alternative Media Pty Ltd (AFS License number 486326) to provide readers with a variety of life insurance policies to compare. Savvy earns a commission from Compare Club each time a customer buys a life insurance policy via our website. We don’t arrange for products to be purchased from these brands directly, as all purchases are conducted via Compare Club.

Savvy does not compare all life insurance policies or providers currently operating in the market. Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy.

For any further information on the variety of insurers compared by Compare Club or how their business works, you can read their Financial Services Guide.

In this article

Share this article

Share on facebook
Share on twitter
Share on linkedin
Share on email
Share on pinterest

Looking for a life insurance quote?

Compare with Savvy and save on your life insurance purchase.

* Terms and conditions and lending criteria applies.

Smart money saving tips

Subscribe to our newsletter.

By subscribing you agree to our privacy policy

Related articles

Looking for a life insurance cover?

Compare a range of life finance options with Savvy from a panel of reputable insurers.
Family mobile plan

We'd love to chat, how can we help?

By clicking "Submit", you agree to be contacted by a Savvy broker and to receive communications from Savvy which you can unsubscribe from at any time. Read our Privacy Policy.