Most employees in Australia are covered by income protection insurance. But do you know that tradies are also eligible for this too? If you are among them, then it’s high time you look at income protection insurance closely to know how you’ll benefit from it. Although you may already have an idea as to what it is about and what percentage of income it can replace if you’re unable to work for a certain period, still there’s a lot that you should know as far as tradies income protection insurance is concerned. So before you purchase a policy, be sure to read on this article to help you understand this type of insurance better.
What you need to know about income protection insurance?
Income protection insurance is basically a type of insurance that provides payout to the policyholder in the event that he or she cannot report to work for a certain period due to injuries or sickness. This can replace income up to 75% and can cover illnesses or injuries at work or away from it.
Now, to file an income insurance claim, you must be incapable to work throughout the waiting period. For most tradies, this period is up to 30 days, but it can be prolonged or shortened according to your desired duration.
As soon as your claim is approved, you will be eligible to receive a monthly benefit and will continue to receive such as long as you are unable to work. The benefit payout period can be from as little as 2 years or up to the age of 65 depending on what your policy stated.
The main advantage of having this type of insurance is that in spite of your absence from work, you will still be able to receive a portion of your income to cover your utilities expense and other basic needs. But apart from these, payout can also be used to help you pay for post-recovery expenses, so you can go back to work as soon as possible.
Why you should have it?
Apart from the main advantage that’s mentioned above, there are other notable reasons why one should purchasetradies income insurance protection. One is because of worksite and building company rules. Some companies in Australia require subcontractors and tradies to get coverage because unlike those who are employed, they are not covered by sick leave and any form of worker’s compensation. Just imagine this: how do you think you’ll be able to pay for business office rent if you are currently out of income? Large building companies are aware of this risk, thus they make sure you comply with such requirement before you are allowed to rent or lease.
Another reason is that, when you are incapable to receive income because of sickness or injury for a certain period, your family is likely to suffer with you especially if you are the only breadwinner. This can bring so much stress, so before you find yourself in this situation, you better have income protection insurance coverage for your very own financial security.
Where to get started?
So now that you’ve finally decided to get income insurance, you might get confused as to which policy to choose. Yes, the task of finding the right policy can be pretty intimidating at first. But once you know exactly what it is to look for in a policy, it won’t be as complicated as you think.
First off, ask recommendations from friends or family members. If they have tradies insurance coverage themselves, they can very much provide you with some possible options, or they would direct you to their provider.
However, if you couldn’t seek recommendations, you could request for income protection quotes online. Lots of insurance providers even offer these for free, so make sure to take advantage of them to increase your chances of finding the best coverage. Now, if you’re having a hard time deciding which one to choose, you can always talk to a tradies insurance specialist to help you on the process. He or she can tell you how much coverage you need and what’s the best rate that you can get. Premiums vary from one insurance provider to another, so be sure to buy from one that offers you the most reasonable rates.