Money makes the world go round, right?! For all professionals, particularly for tradies, income protection insurance will cover you in the unfortunate situation that you fall ill or become injured. No one wants to be put in a position where they have to struggle to make ends meet.
What Tradesmen should know about Income Protection Insurance
- It provides a fixed weekly or monthly payment until the policyholder is able to return to work, decides to retire, or the term of the contract finishes.
- It covers you financially for up to 75% of your taxable income and may include contributions toward your superannuation depending on the type of income protection insurance cover taken out.
- The cover will be available until you’re 65 or retire, as long as you continue to pay premiums on your income protection insurance and are continually working throughout most of your lifetime.
When would tradies make an Income Protection Insurance claim?
- You fell severely ill and have medical evidence from your doctor that you are unable to work. Generally, with most policies, there is a 30-day waiting period until payment will commence.
- With medical evidence from your doctor, you are injured at home and unable to work. Again, a 30 day waiting period is imposed before financial assistance begins.
- Become involuntary redundant and unemployed for a minimum period of three months. Only a small number of Australian general insurance organisations will provide cover for involuntary redundancy, so you will need to look closely into this when selecting income protection insurance.
Why should tradesmen get Income Protection Insurance?
- If you are the breadwinner of your family and they are dependent on you financially, It means you can continue to put meals on the table, put petrol in the car and keep the car running, pay the mortgage and ensure school or daycare fees are able to be paid even if you are unable to work.
- If you have a house to pay off, credit card bills, telephone bills, and personal loans that require payment on a regular basis.
- It provides peace of mind and financial assistance should you fall sick or become injured and unable to work.