Accidents and illnesses can occur at any time – but for skilled tradespeople, who frequently work in dangerous environments, they’re more likely to occur than for other professionals. Whether it’s working with power tools and machinery or at great heights, or around large, fast-moving vehicles or handling hazardous materials, the risk of injury and/or illness is ever-present.
With this in mind, it’s important for tradies to consider how they’d be able to afford their monthly outgoings, and, where applicable, support their family, in the event they became seriously injured or ill – and unable to work. In this post, we look at how to select the best income protection for tradies in Australia and what to keep in mind when choosing an insurance policy.
Income protection insurance for tradies is a type of insurance policy specifically designed for professional tradesmen, such as builders, carpenters, mechanics, and other jobs generally described as “blue collar”. Income protection cover for tradies ensures you still receive a monthly income in the event you’re unable to work due to contracting a serious illness or suffering an injury.
Your policy should generally safeguard your monthly income until you’re able to resume work or reach retirement age (the specifics of which will depend on the conditions outlined by your specific income protection policy). However, if you are in a high risk trade; your benefit period may be limited to 2 or 5 years.
Here are a few reasons why it’s crucial for skilled manual workers to get the best income protection for tradies:
Plus, when you consider that many occupations held by tradies are among the most dangerous in Australia, income protection cover becomes all the more essential.
Income protection cover, in contrast, protects you against injuries and illnesses that occur outside and inside of work. More importantly, the best income protection for most qualified trades could cover you till you can return to work or 65 years of age.
Here are some of the most common occupations covered by the best income protection insurance for tradies:
This list is by no means exhaustive, so if you don’t see your profession on the list, schedule a free appointment to speak to the team at K Partners – as we’ll be able to advise you on the best income protection cover for your occupation.
The cost of income protection insurance for tradies depends on the person taking out the policy. Things that factor into the cost of income protection premiums include:
Additionally, the price of income protection cover is influenced by the:
See more: Life insurance cost
There is actually a difference between income protection insurance for tradies and tradies insurance in Australia. While you take out the best income protection for tradies possible to safeguard your monthly salary in the event you can work, tradies insurance is designed to protect you from the financial costs of litigation.
Insurance for tradies combines public liability insurance, which protects you in the event someone is injured or their property is damaged during the course of your work; and product liability insurance, which protects you if a product or material used on a job causes injury or damage. In both cases, your insurance provider will cover all your legal costs, damages, and compensation.
Subsequently, insurance for tradies and income protection insurance for tradies actually complement each other, and it’s prudent to take out both policies.
See more: Income protection for sole traders
As well as income protection cover, skilled tradesmen should take out:
With decades of combined accounting and financial planning experience, K Partners’ skilled team will help you find the income protection cover that best suits your exact needs.
For impartial advice on income protection insurance, life insurance, or any other aspect of estate and financial planning, contact us to book your consultation.
Please note that all the while the information provided above is factual in nature, it’s also intended to apply generally, and to a broad audience. Subsequently, the information hasn’t taken your personal circumstances or goals into consideration.