Income Protection Insurance

Income Protection Insurance

By opting to carry income protection insurance, tradies give themselves and their families peace of mind knowing that if an illness or accident happens, they will not plunge into financial ruin.‍

What is income protection insurance?

Income protection insurance provides cover if you are unable to work because of an illness or injury. We believe this is extremely valuable for tradies, especially those who are the primary source of income in their household. This type of cover differs from workers compensation. In order to receive a payout for a claim using workers compensation, you must be the victim of a work-related injury or disease.

Why tradies need income protection cover?

When all is well, it is easy to think all will remain well. While this is a natural belief, it is also an inaccurate assumption. Many tradespeople work on job sites where there is a considerable chance of injury or around products with the potential to impart a disease. However, all tradies go to their job via some mode of transportation. Every year thousands of Aussies are seriously injured on the road. You can lead a very cautious and ostensibly safe life, and still receive a dreadful medical diagnosis. There is no reason to leave your family’s financial future to chance when you have the option to create a reliable safety net with income protection insurance.

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.