DIFFERENCES BETWEEN WORKERS COMPENSATION AND INCOME PROTECTION INSURANCE
Confusing workers compensation insurance with income protection insurance is easy. As stated, the terms of the payout are the most significant difference between the two types of cover. We cannot stress enough that workers compensation will only pay you if your injury or illness is directly related to your work.
Income protection cover pays you a benefit if you are unable to work due to an accident or illness.
The amounts and timing of your payout is another difference between the two plans. Workers compensation insurance pays a small portion of your income, most tradies we talk with say the amount is not nearly enough for basic needs. Income protection provides up to 75% of your income as well as additional benefits such as a day one claim and a death benefit. This amount allows you to pay your bills and maintain your lifestyle while you heal.
We believe that income protection cover is one of the most beneficial types of insurance that a tradie can own. Contact our office if you would like a review of your cover or more information about specific types of insurance.