Many industrial agreements oblige the employer to cover their workers for income protection, sometimes called salary continuance. There are also provisions in statutory superannuation policies for income protection in cases of injury, and many workers unable to work often miss out on this benefit.
What is Income Protection Insurance?
Income Protection Insurance is a safety net designed to safeguard your financial stability when you’re unable to work due to illness or injury. It is a type of insurance that provides a portion of your income, typically up to 85% of your pre-tax earnings, during the period of your incapacitation.
Significance of Income Protection Insurance
Merely a third of Australians possess income protection insurance. The lack of coverage can primarily be attributed to the dearth of information. The primary purpose of income protection insurance is to ensure that you can meet your financial obligations, such as bills and debt repayments, when you’re unable to work. It’s particularly beneficial for individuals with dependents and significant debt.
Coverage of Income Protection Insurance
Income Protection Insurance covers part of your income if you are unable to work due to a severe illness or disability. The specific definition of a severe illness or disability varies among insurance providers, so it’s advisable to check your insurer’s terms before making a claim. Some employees also have income protection cover as part of their superannuation policy, which can be accessed during challenging times.
In this case
Aaron was injured in a weekend fishing accident and was unable to continue his role as a forklift operator in a brick yard, so was told he was no longer needed.
As the incident happened outside work hours, he assumed it was fair enough. All the same, he was under pressure to pay his mortgage, so asked an expert to review his situation.
An assessment of the matter revealed he was covered by an income protection policy. Had he not sought advice, he would have missed out on this benefit.
Workclaims Australia has a long track record of successful income protection claims.
