Living in Perth and looking for Income Protection Insurance?
Perth has the fastest population growth rate anywhere in Australia, increasing by 2.5% every year, so it’s relatively easy for Perth workers to apply for income protection, with many brokers and major insurance companies having offices in and around the metro area. Perth residents have the option of:
- Contacting insurers directly
- Contacting a national insurance broker or locally based broker to help them find the policy that’s exactly right for their needs.
How can finder.com.au help workers from Perth?
finder.com.au provides free information to help you decide on an income protection policy and can you in touch with an adviser. These advisers can give you impartial advice and can help you review the different policy options available.
While consulting with an insurance broker is often the best way of ensuring you find an income protection policy that fits your needs, not everyone has the time or the inclination to do so. Some people with a basic understanding of how insurance works prefer to do their own research online and to buy their insurance direct from the provider. There are several benefits to purchasing insurance this way, including:
- The fact that it is fast and easy to do
- There is little or no underwriting involved
- No costly and time-consuming medical checks
It comes down to personal preferenceThe downside of direct insurance is that these policies tend to be ‘one-size-fits-all’, meaning that they may not fully cover your specific circumstances. Direct policies also tend to provide lesser amounts of cover and to contain more exclusions than personally-tailored policies. Nevertheless, if you don’t mind doing your own research, direct insurance can be a fast, easy and low-cost option for obtaining basic income protection cover.
- Prefer not to speak with an insurance broker?
- Do I really need income protection if there's workers compensation in WA?
- What stamp duty do I pay for Income Protection in WA?
- Stamp duty on income protection (state by state)
- Are you a miner in Perth? You may want to consider Income Protection
- Can migrant workers in Perth take out Income Protection cover?
Workers compensation only covers incidents that occur on the job. Income protection can provide you with comprehensive cover that protects you both in the work place and outside of the work place. Some of the key benefits of income protection include:
- Protection if you are unable to work due to injury or illness
- An ongoing benefit to replace up to 75% of your income
- Tax benefits on premium payments
What does workers compensation in WA provide?
- You require medical treatment
- Time away from work
How does WorkCover WA define a worker ?
- Commission workers.
- Contractors (depending on their work arrangements)
In Western Australia, the stamp duty payable on income protection insurance is 10%.
Stamp duty is a state government tax that is charged on a variety of financial products including some forms of insurance. Stamp duty is levied on income protection insurance and this amount will be declared and paid for by your insurer and then factored into the premiums that you will pay.
The amount of stamp duty payable on income protection insurance varies from state to state:
|New South Wales||5%|
Western Australia has experienced exponential growth in the past few years and much of the economic prosperity and rapid population growth can be attributed directly to the mining boom in the north of the state. Miners known as FIFOs (Fly In Fly Outs) live with their families in Perth and commute by aircraft to the various mines, where they work on rotating shifts. They earn high wages and as a result, enjoy a comfortable lifestyle, often buying quality homes in and around Perth.
The problem is that, as well as being lucrative, mining is perceived by insurers as being a higher risk profession and miners can therefore have difficulty obtaining income protection insurance at an affordable price. Because of this, miners wanting to take out income protection insurance could really benefit from using an insurance consultant to help them find adequate cover at an affordable price.
A consultant can use their specialist knowledge of the marketplace to find competitive products and to guide them away from exclusions that might limit their cover. It’s important to remember that as a miner, you should always declare your occupation when trying to obtain income protection insurance. While you will be perceived as higher risk and have to pay more than others, you may be able to have the risk level reduced and consequently your premiums, if your occupation at the mines is considered to be a lower risk one, such as in administration or catering.
To fill specialist roles in the mining industry that can’t be filled by Australian workers, employers often look overseas for suitable applicants. These applicants travel to Australia on temporary visas known as Temporary Work (Skilled) Visas or 457 Visas and they can remain in the country for up to four years. During that time, their employer must provide health insurance and public hospital cover for them and their immediate families.
The problem with 457 Visa holders is that, if they get sick or have an accident that renders them temporarily incapable of working, their employer has to return them to their country of origin, even though they may soon have been fit to work again. To counter this problem, many employers are now taking out income protection insurance for their 457 Visa holders, to cover this period of potential illness or injury and to avoid losing the money they have already invested in the employee’s training.
If you are an employer looking to take out income protection for your foreign employees, you would be wise to talk to a consultant who can find an insurer who specialises in such policies and knows the ins and outs of the 457 Visa scheme. if you are a 457 Visa holder whose employer has not taken out income protection insurance on your behalf, you could also benefit from using a consultant, to help you compare available options and find a policy that will protect your income while you are in Australia.