Why Young Professionals Should Consider Income Protection Insurance Early

As a young professional starting your career, financial independence is an exciting milestone, but it also comes with responsibility.

One of the most overlooked yet essential aspects of long-term financial planning is income protection insurance.

While over 50% of people agree that income protection is important, only a small percentage actually have it.

This gap highlights a critical area where informed financial advice can make a life-changing difference.

What Is Income Protection Insurance?

Income protection insurance provides a monthly payout if you’re unable to work due to illness or injury. It helps cover essential living expenses—such as mortgage, rent, bills, and groceries—so that your financial stability isn’t jeopardised during recovery.

For young professionals just starting out or building momentum in their careers, this safety net can prevent a temporary setback from becoming a long-term financial crisis.

Why It’s Relevant Now More Than Ever

The financial landscape is changing rapidly, and young adults are more engaged than ever.

Research shows that over 70% of people aged 18–29 are interested in topics like life insurance, yet 65% haven’t spoken with an Independent Financial Adviser.

That’s a huge opportunity to take control of your financial future—and get personalised advice that makes a real difference.

Read why financial planning is crucial when you are young

As your financial goals evolve—whether you’re planning to buy a home, start a family, or invest in your future—income protection should be a key part of your financial plan.

The Income Protection Gap

The AMI Protection Viewpoint 2024 revealed a striking insight: although 53% of consumers think income protection is important, only 7% have a policy. The same trend appears with accident, sickness, and unemployment cover—55% say it matters, but again, only 7% are covered.

This gap suggests not just a lack of awareness, but a real opportunity for improvement. Encouragingly, younger generations are showing growing interest:

  • 13% of Gen Z and 15% of Millennials already have income protection
  • Compared to just 5% of Gen X

This trend shows that young people are increasingly open to protection planning, especially when given the right guidance.

The Case for Early Action

Planning ahead means being prepared for the unexpected. If you’re in your 20s or early 30s and thinking about buying a property, getting married, or starting a family, now is the time to consider income protection insurance. By acting early, you can often benefit from lower premiums and longer-term security.

As Independent Financial Advisers, our role is to help you understand your options, make informed choices, and build a strong foundation for your financial future. Income protection isn’t just for later in life—it’s a smart move now that can safeguard everything you’re working toward.

Let’s Build Your Financial Safety Net

Navigating life’s financial decisions can be complex, but you don’t have to do it alone. We offer tailored advice to help you create a plan that fits your lifestyle, goals, and budget—including whether income protection insurance is the right step for you.

Take control of your financial future today—start with a conversation.