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Have you been injured at work? Will the injuries you’ve suffered keep you away from the job site for a little while? Workplace injuries are quite common, and that’s why it’s important to invest in life insurance products that will make sure you’re still able to get some money coming in that will take care of household expenses. Among these products is income protection, providing financial peace of mind as you recover from your injuries and ailments.
What is income protection insurance?
To explore the options that are out there for you, be sure to utilize a comparison tool to weigh these life insurance products. Type “income protection insurance Australia” to see the amount of coverage that is out there for you as an injured party. An income protection policy can pay up to 70 percent of your pre-tax income for a set time period if you’re unable to work due to a partial or total disability. This could allow you to stay on top of your bills and expenses as you recover. However, income protection insurance is not the same across the marketplace.
Insurance companies offer up income protection as a safety net for all employees, but it’s especially valuable for those workers who may not be able to get protection from a workers’ compensation agreement. Some insurance policies offer an optional extra lump sum payable to your beneficiaries in the event of a permanent disability that keeps you out of work for good. The illness, accident, or injury must incapacitate the policyholder for longer than the policy’s waiting period (a time period that varies based on the life insurers that you work with).
What are the benefits of this insurance?
The greatest benefit of income protection insurance is just getting some financial peace of mind in the event that a partial or permanent disability shores you up. Reducing the stress of a financial dilemma on your loved ones ensures that even though you can’t work, you don’t have to deviate too far from the lifestyle you’ve worked hard to achieve. When exploring your insurance options, you’ll not only want to look at the premiums offered up, but you’ll also want to understand the benefit period of this coverage.
Some insurers can offer up as much as five years of income protection if you’ve suffered significant injuries on the job. This extended period of time is good news for those workers who may not be able to get a weekly or monthly payment from workers’ compensation or the Australian government for the injuries suffered in the workplace. When it comes to taxation, all income protection insurance premiums are exempt from GST. As income protection insurance is classified as ‘financial supplies’ by the Australian Taxation Office, avoiding the 10-percent tax rate applied to other goods and services.
What should I look out for when comparing policies?
Like all insurance products, premiums for income protection coverage depend on a variety of factors, including:
- Age of the applicant
- Income
- Occupation
- Lifestyle
Policy premiums can differ between insurance companies with optional extras that come with this income protection insurance policy. For example, you can expand coverage to include death benefits in the event of your untimely passing, or opt for benefits for permanent disability if recovery from your injury will still keep you from getting back to work. This will further affect your premiums, but don’t be caught off-guard.
Comparison tools and services will help you get the best scope of the Australian life insurance industry to know what your options are when it comes to income protection coverage. This will also help you to understand the waiting periods that come with these policies, as well as certain exclusions on coverage from life insurers. In the end, you have a better chance of finding the right policy for you.