Not all 7 days are the same

We readily insure homes against fires, cars against accidents, and lives against tragedy. Yet for the asset that generates all other wealth – our ability to earn – we often accept protection gaps and limitations that would be unthinkable in other insurance contexts.

In an era of volatility – from markets to geopolitics to health crises – the greatest risk to wealth isn't always a recession or a bad investment. It's the unexpected pause: the injury, illness, or medical event that halts income for weeks, months or even years.

This is where income protection comes in, to provide a steady income if you’re unable to work due to illness, injury, or disability. For medical professionals running their own practices and entrepreneurs managing their own businesses, the difference between financial stability and erosion often hinges on liquidity – making comprehensive income protection a critical wealth preservation tool.

The cost of being booked off work

Claims data from medical professionals, for example, offers insights about when income protection is most needed.

The graph above shows a striking reality: 45% of income protection claims for a medical professional are for periods under one month. Even more revealing, the highest frequency of claims lasts a 2-4 week period. Yet many income protection policies have a standard 30-day deferred period, leaving professionals exposed during shorter periods.

While this data represents medical professionals, the pattern applies broadly to self-employed individuals and business owners across sectors. The financial vulnerability during short-term inability to work is a universal challenge.

Beyond just timing: why quality of protection matters too

While the timing of protection is crucial, the quality and reliability of that protection are equally important. When evaluating income protection, many focus on the monthly premium amount rather than the comprehensiveness of coverage. This can lead to overlooking two significant gaps that often become evident only when it's time to claim.

The real cost of protection gaps

When you work for yourself, the impact of these limitations extends beyond just personal income. When your business depends on your ability to work, a significant life event can affect everyone who depends on your earnings.

In these moments, wealth protection shouldn't introduce new uncertainties. Yet many professionals find themselves facing precisely that situation in the insurance market. They're paid out only partially, when full coverage was expected. Their premiums escalate as their health changes, making long-term protection increasingly unaffordable.

Rethinking protection to match your needs

The question isn't simply whether you have income protection, but whether that protection truly matches the financial reality of your life. Does it provide the full coverage amount you expect? And does it remain stable and affordable throughout your career?

For entrepreneurs or business owners, the line between personal and your business' financial health is increasingly blurred. True income protection represents more than just faster access to support – it's about more certainty in an uncertain world. Because when your income drives not just your personal wealth, but potentially the livelihood of employees and the care of clients or patients, every aspect of that protection matters.