Australians 'are too laid back over income protection'

Aussies may be pouring more money into their savings accounts, but too many people are leaving themselves in danger of financial hardship by failing to take out adequate income protection insurance.

According to the Financial Services Council, 95 per cent of workers across the country do not have the right level of cover and this could prove extremely problematic in the long term, News Limited reports.

Even though it is an extra cost that households could do without, having payment insurance in place is crucial.

If you suddenly fall ill or lose your job for whatever reason, you are still able to pay your mortgage.

Levels of unemployment across the nation are very low at the moment, but it only takes a sudden economic downturn to force companies to trim their workforce – leaving plenty of Aussies in the lurch.

Holly Dorber of the Financial Services Council said Aussies are too laid back to take out income protection insurance.

"People just don't think it will happen to them," she told the news provider.

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