Owen Rascovich

So some finance books suggest X percent, you know, like...

10 times your annual income.

That's what you should have if you have this type of situation.

Very general advice, but you can get them online.

I'll provide a link to a report that says what the average person should have.

Next, income protection.

This is probably the most important one for a single income family is just securing your income.

And the way it works is I'm a tradie.

I get in a car accident.

My income is gone.

Three months, I can't work for three months because I've broken my ankle.

Well, let's say even six months, right?

We've talked about emergency fund savings and that.

I've injured my ankle, so I need to get some sort of cover.

Now, the way it works with income protection is you go to the doctor and you get a medical certificate and then you send that off to the super fund, right?

Or they'll get you to send it straight to the insurer.

And what happens is from the day that you get the certificate, that's when the waiting period starts.

So then you might get one, two, three months of a waiting period, just for example, and then you start to earn money.

As in that's when the insurance kicks in.

so income protection is you are trying to protect yourself from a really long injury and this you can get income protection for two years you can get for five years you can get it until you're 65 so if this person loses their leg and they can't work for five years then they might get income protection for five years I've seen not losing legs but I've seen things like that happen before so that's a really good one income protection you can just do a percentage of your wage or you can do an agreed amount