- Life Insurance Products
- What is Life Insurance?
- Why Do I Need Life Insurance?
- How to Purchase Life Insurance
- Key Person Insurance
- Life Insurance vs Income Protection
- Life Insurance Glossary
- Frequently Asked Questions
- Is Life Insurance Tax Deductible?
- How Much Life Insurance Do You Need?
- Best Life Insurance
- Income Protection & GST
- Life Insurance And Superannuation
- Life Insurance For Seniors
- MLC Life Insurance
- When Is Life Insurance Paid Out?
The Tradies guide to Income Protection Insurance: Do you really need it?
If you’re a builder, electrician, plumber or other type of tradesperson, you’re in a league of your own when it comes to life insurance.
First of all, unlike many other professions, it is often compulsory for you to have Income Protection Insurance (which is one form of life insurance) before you walk onto a building site – particularly if you are self-employed or a subcontractor.
Second, because you work in an occupation that has a high rate of work-related injury, your insurance premiums can be higher than other people’s, too.
Given this, it’s important that you know what to look for in your life insurance. Here are some of the common questions we get asked.
I have workers’ compensation. Why isn’t that enough?
Apart from the fact that many building sites stipulate that you must have Income Protection Insurance on top of workers’ compensation insurance, there are real benefits to having this extra layer of protection.
Workers’ comp will only make payouts for a limited number of years, and may not cover much of your income. Plus, it only covers you for injuries sustained in the workplace – so if you hurt yourself outside work, or get seriously ill and can’t work, you’re not covered. Imagine if you suffered a serious injury playing sport and couldn’t work for a long time … could you and your family survive financially without some extra help?
As a tradie, what should I look for in Income Protection Insurance?
There are two key things to look out for when you’re shopping around for your Income Protection Insurance:
- One that bypasses the waiting period on accidents, so if you were to hurt yourself tomorrow, you’d be covered; and
- Look for fully medically underwritten cover, which assesses you for any pre-existing medical conditions when you sign up for the policy, instead of when you make a claim.
Are my income protection insurance premiums tax-deductible?
In most cases, the premiums for your income protection insurance are tax deductible, which is a great win come tax-time. Please check with your accountant to clarify your specific circumstances.
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