Many insurance companies in Australia are glad to provide cover to those who are living in Australia on a 457 visa. However, in March 2018, the 457th was formally abolished. At this time, no new applications for this visa will be accepted, but existing visas will still remain valid. The new employer-sponsored work visa, called the Temporary Skills Shortage (subclass 482) visa, nicknamed the TSS, replaced the 457.
Commonly, the insurer will require that you have definite intentions of staying in Australia and becoming a permanent resident when you are eligible. Also, insurance companies might seek to place an exclusion on your income protection policy relating to how long you can be out of Australia before your policy is cancelled. The insurance company might insist that you return home for medical advice before paying your claim in case you fall ill or sustain an injury whilst being overseas.
There may also be some restrictions on income protection insurance for these visa holders. There are many things to consider when looking at income protection whilst residing in Australia on a visa. Speaking to a financial adviser will enable you to understand exactly what your policy will and won’t cover.
What Should Non-Residents Know About Income Protection Insurance?
Income protection insurance pays you a percentage of your wage, for a set period, if you’re unable to work due to a sudden illness or injury. It is a financial safety net.
So, if you can’t work for six months because you have a serious car accident or so, you’d get regular payments from your insurer – meaning you could focus on your recovery without falling behind on the bills.
For your payment monthly– usually, around 1-2% of your salary – income protection insurance gives you peace of mind if you get injured or become ill at work.
Will My Employer Provide Me with Insurance?
Normally, employers offer a basic level of insurance known as “WorkCover.” This type of insurance is restricted in what it will cover you for, as it is a prerequisite that you be unable to work due to an injury sustained at work. Your employer is not obliged to make a continuous payment on your income if you are incapable of working. Due to the number of income protection claims being a result of non-work-related injuries and illnesses, a more universal type of insurance is desirable. Your employer can choose to pay the cost of income protection, but again, they are not obligated to.