Income protection insurance is one of the main types of insurance that tradies need. Working on a construction site requires income protection insurance, so it is important to understand how it works and how it can benefit you.
It is often mandatory for tradies to have Income protection insurance before entering a building site, which is not the case with many other professions. As you work in an occupation that has high physical demands on your body, your insurance premiums can be higher than other people’s, too.
If you need an income protection quick quote, you can get it here. Read on to get more information and ways you are benefited from an income protection insurance policy.
Tradies are cognisant of the dangers associated with their work. Thus, Aspect Income Protection insurance is designed to replace up to 85% of your income if you are unable to work due to injury or illness. It covers you irrespective of whether you’re an employee, contractor, or self-employed, regardless of whether you are injured at work or outside of it. It also covers illness where workers’ compensation basically does not.
As soon as your claim is accepted, you receive a monthly benefit from income protection and ceases only when you’re fit and able to return to work, after your benefit period ends (you can choose when this happens) or after you reach a certain age (usually 65 to 70 years old).
Tradies cannot rely on worker’s compensation as sole traders/proprietors, or members of a partnership are not considered workers. They also cannot take out workers’ insurance to cover themselves for injuries. Moreover, workers’ compensation can only cover you for an injury or illness related to your job; it does not cover a serious illness or injury outside of it. Thus having all of the benefits of income protection insurance is a sensible option.
Rather than focusing on the cost of income protection insurance, tradies can consider the benefits and utilise them. It may seem expensive to some to get income protection, but imagine if you were uninsured and unable to support your family. Your insurance premium is determined by your age, smoking status, type of work, and more, as with most other related products.
Tradies would do well to review which combination of the sum insured, benefit period, and waiting period is affordable yet still provides adequate cover, and remember that Income Protection premiums are generally tax-deductible.
It is vital for tradies to have income protection insurance, not only to protect themselves in case of injury or illness but also to provide financial security for their families. When searching for income protection insurance, it is a good idea to obtain a few quotes first. Any financial adviser can provide quotes, but most tradies agree that it’s best to find one who specialises in tradesman’s insurance.
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Mike Wallis
Mike has over 25 years experience, having spent his first seven years working as a Broker at Jardine Lloyd Thomson in Melbourne and in 2002 was transferred to JLT’s Accident and Health Department in London. For four years (2002 – 2005) Mike was a specialist A&H Lloyd’s Broker and during this time developed excellent relationships with the Lloyd’s A&H underwriting fraternity. In 2006 he returned to Australia in a senior broking position with overall responsibility for Placement Strategy, including the implementation of underwriting facilities and the various authorities granted by Lloyd’s. Mike was the underwriter at two specialist Underwriting Agencies prior to founding Aspect Underwriting in 2016.
