Why is Income Protection Insurance Worth Considering for Farmers and Agricultural Workers?
Like most occupations, your health is paramount to your ability to carry out day-to-day tasks to earn an income. Agricultural workers not only face serious illness and injury outside of the workplace but can also be exposed to a number of risks in their role with agriculture, forestry and fishing being ranked the second most dangerous industries in Australia in 2014. Reports have also shown that the average length of time off work due to injury was between 7-8 weeks.
What cover does income protection insurance provide?
Income protection insurance provides an ongoing benefit payment of 75% of your income if you are unable to work due to serious illness or injury. This benefit payment can be used to cover expenses like mortgage repayments, rent, personal debt, everyday living costs and rehabilitation costs.
This article will look at some benefits of taking out cover for farmers in Australia. If you would like to receive a quote for cover, you can submit your details in the form below to receive a quote and discuss different policy options with an adviser.
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What risks can farmers be exposed to?
- Injury from machinery
- Excessive exposure to sun
- Injury from heavy labour work i.e.
- Chronic joint and muscle conditions
- Sprains or strains
- Fractures or crushing injuries that can cause internal organ damage
- Superficial injuries, such as cuts or open wounds
- Stress or other mental conditions
Income Protection can Mean the Difference Between Survival and Going Under
Income protection insurance is a monthly benefit agreed to by the insurer and farmer at the commencement of a policy. It covers accidents, illness or trauma that result in you being unable to attend to the farm for any length of time. You have to agree on a waiting period at the commencement of the policy, this can be anything from two weeks duration or several months. It depends on your financial reserves at the time but the longer you can put off receiving benefits the lower will be your premium cost.Back to top
Keeping Premium Payments to a Minimum
Another way to keep your premium payments to a minimum is to state how long you want the benefits to be paid. The shorter the period you choose to receive benefits, the lower the cost of your premium. Income protection insurance premiums are also tax deductible and therefore of benefit to a farmer in this area when compiling your annual taxation returns.Back to top
Review Your Insurance
When taking out income protection insurance it is also a good time to review all your other personal insurances. Farming, being an individual occupation, means that you are basically out there looking after yourself. It is an occupation that carries with it a greater risk than many other vocations because of the use of machinery and dealing with animals. It is imperative that you protect your family with sufficient income protection cover, total and permanent disability and of course ` insurance:
- Adequate life insurance means that if something was to happen to you and you were to die, your dependants would inherit a farm free of all encumbrances. Although you might not be there to look after the farm anymore, you can rest assured that the legacy you leave will be greatly cared for in your memory.
- Total and permanent disability (TPD) insurance is important if you managed to survive the trauma but were left in such a state that you were no longer able work on the property to have it earn the family a living anymore. TPD insurance pays a lump sum amount as does life insurance and if this money was used to pay a manager to run the farm on your behalf you could spend the rest of your days on your beloved property watching it grow and become your families greatest asset, as you always planned it would.
- Income protection insurance for farmers will see you survive a rough patch whereby you became too ill to attend to your daily duties on the farm. It allows you to keep things going while recuperating, and when you are fit enough to return to work once again, you could do so without having to catch up with all the work that would otherwise not have been done, while you were too ill to do it yourself.