Do I need income protection insurance in my 30s?
When you’re in your 30s, insurance may not be top of mind—especially if you're healthy, employed, and building momentum in your career. But what happens if illness or injury stops you from working for months (or even years)? That’s where income protection insurance can be a financial lifesaver.
At McMillans, we help clients of all ages assess their financial risks and make informed choices about protecting their income—often one of their most valuable assets.
What is income protection insurance?
Income protection insurance provides you with regular payments—usually up to 70–75% of your income—if you’re unable to work due to illness or injury. The payments continue until you return to work, reach the end of your benefit period, or hit your retirement age (depending on your policy).
It’s designed to cover everyday expenses like your mortgage or rent, groceries, utilities, and childcare, so you don’t burn through your savings or go into debt during recovery.
Why is it important in your 30s?
Many people assume income protection is something to worry about later in life. But in reality, your 30s can be one of the riskiest periods to go without it—especially if:
You're reliant on your income to pay off a mortgage or support a family
You have limited savings and wouldn’t cope financially without work
You’re self-employed or run your own business
Your employer doesn’t offer adequate sick leave or salary protection
It’s worth noting: 1 in 3 Australians will be unable to work due to illness or injury at some point before retirement. That’s a risk worth planning for.
Isn’t workers’ comp or Medicare enough?
Not always. Workers’ compensation only applies to injuries sustained at work or in the course of employment. That excludes the majority of health-related issues like:
Mental health conditions
Chronic illness
Car accidents
Sports injuries
Cancer, stroke, or other medical events
Medicare can help cover treatment—but not your lost income.
Key features of income protection to consider
When selecting a policy, you’ll want to compare:
Benefit period: How long payments will continue (e.g. 2 years, 5 years, or to age 65)
Waiting period: How long you need to be off work before payments start (e.g. 30 or 90 days)
Monthly benefit amount: How much of your income is replaced
Agreed value vs indemnity: Whether your benefit is based on a pre-agreed amount or actual earnings at the time of claim
Premium type: Stepped (cheaper now, increases with age) or level (higher now, stays stable)
An adviser can help you choose the right mix for your personal and financial situation.
Is it expensive?
Not necessarily. The cost of income protection depends on:
Your age, health, and occupation
The benefit and waiting periods you choose
Whether you smoke
The structure of the policy (e.g. through super or personal)
Many people in their 30s are surprised by how affordable cover can be—especially with tax-deductible premiums (outside of super). In many cases, a well-structured policy costs less than a few takeaway coffees per week.
Income protection through super: pros and cons
Some super funds offer income protection automatically, but it’s usually limited in scope and may not meet your actual needs. Pros and cons include:
Pros:
Premiums paid from your super balance (no upfront cost)
Can be a good temporary option
Cons:
Often basic cover with short benefit periods
Less flexible claims process
Reduces your retirement savings
It's worth reviewing the fine print to ensure you’re properly covered.
McMillans can help you get covered
As part of our financial planning services, McMillans can:
Review any existing policies inside or outside super
Recommend a tailored policy that suits your income, lifestyle, and risk appetite
Structure your premiums in a tax-effective way
Provide claims support if you ever need to access the policy
We’ll help you make smart decisions about protecting your income—without overpaying or overinsuring.