skip to log on skip to main content
VoiceOver users please use the tab key when navigating expanded menus

How long can you last with no income?

Published 12 February 2018

After Natalie was diagnosed with breast cancer her family faced a fight for survival.

A diagnosis of a life-threatening illness sent one woman on a journey she could never have predicted. Thankfully, her family was financially prepared for the fight of her life.

At the time, Natalie's* life was on a predictable course. At 36, she was married with two young children, a mortgage and a job she enjoyed. The family dog completed the picture of a typical Australian family.

Then everything changed. In Natalie's case, a casual conversation with her husband led to the detection of breast cancer. Despite having no family history of the disease, she discovered a small lump in her breast. After a mammogram, an ultrasound and a visit to a breast clinic doctor, Natalie was diagnosed with Stage 2 breast cancer.

Not only was she unable to work while she was undergoing treatment, but her husband also needed to take six months’ leave to care for her and the children.

They had health insurance but that would not cover their loss of income. A quick check of their life insurance policy reassured them that Natalie’s loss of income and out-of-pocket financial costs would be covered and funds would be available for her husband to take unpaid leave to care for her. That provided peace of mind so they could get on with the job of healing.

More than one in five Australian families will be impacted by an insurable event in their lifetime, according to the Lifewise/NATSEM Underinsurance report. Yet 95 per cent of families do not have adequate levels of life insurance.


How can you protect your income? For a lot people, if something did happen, they'd find themselves in trouble pretty quickly. James Mathison looks into this for us.

Understanding cover types

Unlike general insurance which covers assets such as your car and your home, life insurance can also protect the financial contribution you make to your family.

There are different types of life insurance that generally cover different life events:

  • Life cover pays a lump sum if you die or are diagnosed with a terminal illness.
  • Income protection can replace up to 80 per cent of your income (for a set period of time) which can be used to cover living expenses if you are unable to work due to illness or injury.
  • Total and permanent disability (TPD) cover pays a lump sum if you are diagnosed with a total and permanent disability.
  • Trauma cover pays a lump sum if you are diagnosed with one of a number of serious medical conditions, such as cancer or a heart attack.

In practice, you may need a combination of these products depending on your family’s needs and existing financial resources.

Plan ahead

The best way to plan for your family’s future financial security is to ask 'what if?'. What if one parent died or was unable to work due to an accident, illness or permanent disability? With the loss of an income, most families would struggle to meet their daily expenses and ongoing financial commitments.

While families with children have an added incentive to have adequate life insurance cover, young couples and singles may also need protection. What if you become critically ill and need to take time off work? Do you have enough sick leave to cover the rent or mortgage and other living expenses?

Once you have a clearer idea of the amount of money you would need to preserve your family’s current lifestyle, it’s easier to work out the right level of cover for your circumstances.


*Based on a personal story. Names have been changed to protect identity.

Find out more about ANZ Income Protection

13 16 14

Mon-Fri 8am to 7pm (AEST)

Learn more about income protection


Income protection insurance FAQs

See the frequently asked questions about income protection including cover length, waiting periods, exclusions and costs.



Seven benefits of income protection insurance

Learn about the benefits of an income protection policy, what the protection offers, how you can use it, and tax considerations.



How one couple coped when kidney failure struck

Money can be a painful distraction when illness hits a family hard. And that's what income protection insurance is for.


This information is current as at date of publication and is subject to change.

The issuer of this information is ANZ. While ANZ has taken care to ensure that this information is from reliable sources, it cannot warrant its accuracy, completeness or suitability for your intended use. To the extent permitted by law, ANZ does not accept any responsibility or liability arising from your use of this information.

Australia and New Zealand Banking Group Limited (ANZ) ABN 11 005 357 522 AFSL 234527 is an authorised deposit taking institution (Bank) under the Banking Act 1959 (Cth). The issuers of these products are not Banks. Although ANZ distributes these products, these products are not a deposit or other liability of ANZ or its related group companies. None of them stands behind or guarantees the issuers or the products. 

This information is of a general nature and has been prepared without taking account of your objectives, financial situation or needs. You should consider whether the information is appropriate for you having regard to your objectives, financial situation and needs. 

The ANZ App is provided by Australia and New Zealand Banking Group Limited (ANZ) ABN 11 005 357 522. Super, Shares and Insurance (if available) are not provided by ANZ but entities which are not banks. ANZ does not guarantee them. This information is general in nature only and does not take into account your personal objectives, financial situation or needs. ANZ does not represent or guarantee that access to the ANZ App will be uninterrupted. Temporary service disruptions may occur. ANZ recommends that you read the ANZ App Terms and Conditions available at and consider if this service is appropriate to you prior to making a decision to acquire or use the ANZ App.

Apple, the Apple logo, iPhone and iPad are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.