Importance of Getting an Income Protection Cover Despite Working in A Safe Workplace

It is not unusual to find Australians who feel that they don’t need income protection insurance because their jobs do not entail risky or unsafe environments. Such people might feel that since a major part of their day is spent in the workplace, a safe workplace with secure environment makes them less prone to injury risks. While they may be right to an extent, unforeseen circumstances are just beyond one’s control, since no one knows what will happen the next moment.

Who knows whether something untoward or unfortunate will not happen to you once you step out of the safe environments of your workplace?  Misfortune and accident can strike anywhere and everybody needs to be prepared and protected against them, irrespective of the fact how safe your work environment may be.

Income Protection Insurance is Important for Everyone

You may feel that since you are not handling hazardous factory/ workshop responsibilities, you are much safer than someone who does that and hence may be less prone to consider income insurance. An executive, for example, who spends most of his time in the office doing meetings, deliberations and strategizing, may feel less unsafe than a heavy machinery operator, thereby ignoring the need to opt for income protection insurance. Additionally some also feel that since their work place has strong workers’ compensation plans, they are protected enough from uncertainties and injuries. However, in that case, he is absolutely overlooking a very important aspect, that of the possibility of injury outside his safe workplace. There is no way you can read minds or control erratic behaviour by a certain driver once you are out on the roads. Or for that matter, some technical snag developing in the train that you regularly commute by or malfunctioning of equipment in the gym that you regularly visit. All such things are out of your control and very much have the possibility of causing you bodily harm and injury that might incapacitate you and prevent you from working and earning.

Such instances, though unlikely, are not impossible. Such instances may make you face-to-face with situations where you are prevented from working for extended periods of time and make it difficult for you to meet your regular necessary expenses. Hence no matter how safe and secured your workplace is, you need to be prepared and protected against uncertainties and risk.

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When you have income protection insurance, you have many advantages including:

  • Regular flow of money even if you are not able to work: The usual coverage offered by an income protection insurance can be as high as 75% of your income , which is mostly enough to cover your regular necessities like rent, mortgage, bills, food, etc.  With the stress of the income flow gone, you can focus on getting back on your feet and getting back to your workplace to resume your usual life as soon as possible.
  • Choose the cover needed as per your specific requirements: You can choose how much cover you want after evaluating the different plans and affordability factors, etc.  You may not want to choose the typical 75% coverage usually offered by income protection insurance. For example if you already have some savings and investments that you can bank on, you may opt for a smaller coverage amount and hence a lower premium. Or if you feel that the cost is too much for you to comfortably pay the premium, opt for a lower valued cover.

What Things You Should Consider Before Choosing An Income Protection Insurance Plan?

  • The coverage cost: Choose a plan that has a cost schedule that allows you to pay your premiums comfortably. This usually varies with factors, such as the amount of coverage, the duration for which you get the benefits, etc. Choose one after carefully evaluating and comparing the various plans on offer.
  • The coverage amount: Consider what your regular essential expenditures are, which should typically include bills, rents, mortgages, food, etc. to understand how much of coverage you will need and then go for an appropriate income protection insurance policy that offers the coverage within a cost that suits your purse.
  • Other special features of the plan: It is important to read additional features of the income insurance policy like waiting time for claims, available coverage periods, exclusions clauses, etc. before you finally buy one. Be sure to check all the information out beforehand so that it meets your specific needs and criteria and you are not disappointed when you actually need the services.

In a nut shell, immaterial to whether you work in a safe workplace or not, you need to get the protection of income protection insurance, because you have no control over how and where injury, ill health and accidents occur to you. Take the right step, evaluate and compare the available income protection insurance plans on offer, choose the right one for you and be secured against uncertainties.

Article by Income Protection Insurance AU


Information provided does not take into account your particular investment objectives, financial situation or investment needs. Before proceed to next step seek the assistance of financial adviser.

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