Income Protection & Trauma Cover for Parents: Keeping Your Family Financially Secure
For parents, the thought of being unable to work — even temporarily — can be stressful. The bills don’t stop, the kids still need care, and your family’s lifestyle depends on your income.
That’s why Income Protection and Trauma Insurance are two of the most valuable tools young families can have. Together, they help you maintain financial stability during illness, injury, or recovery — so your family’s world keeps turning even when life takes an unexpected turn.
At Covered Life, we help parents protect their most important asset — their ability to provide.
How Income Protection Supports Families
If you’re unable to work due to injury or illness, Income Protection Insurance replaces up to 70% of your income through regular monthly payments.
That means your family can continue to:
Pay the mortgage or rent
Cover school fees and childcare
Keep up with groceries, utilities, and bills
Maintain their daily lifestyle
It’s about keeping financial pressure off your shoulders while you recover — and ensuring your children’s routine remains stable.
Why Add Trauma Insurance
While income protection supports your regular bills, Trauma Insurance gives you an extra boost when facing a major medical event such as cancer, heart attack, or stroke.
It pays a tax-free lump sum, which you can use for:
Medical treatments or rehabilitation
Travel or time off work
Family support or home modifications
Replacing a partner’s lost income if they stop work to care for you
Together, these two covers help your household stay afloat in both short-term and serious health situations.
Why Families Are at Greater Risk
According to AIHW (2024), 1 in 3 Australian adults will experience a chronic illness during their working years — and for families with children, even a few months off work can create significant financial strain.
Having the right insurance means you don’t have to dip into savings or rely on credit cards to get through tough times.
Tailoring Cover for Parents
Every family’s needs are unique. Some parents prefer higher monthly benefits, while others prioritise longer-term security. With Covered Life, you can customise:
Waiting periods (e.g., 30 or 90 days before payments start)
Benefit periods (e.g., 2 years, 5 years, or up to age 65)
Coverage levels that suit your income and family size
We make sure your cover fits your life — not the other way around.
Why Parents Choose Covered Life
At Covered Life, we understand what it’s like to juggle family, work, and financial responsibilities. That’s why we make insurance easy and stress-free.
We’ll:
Compare Australia’s top insurers for you
Find affordable options that match your income
Explain how to combine policies for full protection
Support you through any claim process
You focus on your family — we’ll handle the insurance.
General advice disclaimer: This article contains general information only and doesn’t take into account your specific situation. You should seek independent advice before acting on any information provided.
