Income protection for miners
Compare income protection quotes for workers in the mining industry.
Nobody likes to face uncertainty about their future, particularly when it comes to health and finances. Miners are amongst the groups of workers who face higher risks as part of their jobs because of the dangers that they are exposed to.
Miners face high risks on the job, which means that they are more at risk of illness or injury that could render them unable to work, risking their income. Pay for mining work is high, as are the risks, making it vital for workers to protect themselves to make sure they don't get the short end of the stick.
Things for miners to look for when comparing income protection
- Clear definition of a miner. Make sure the policy defines the various types of miners clearly.
- The cost of the cover. It is important that you are able to maintain the premium payments on your cover in order to ensure that the plan does not become invalid, so cost is a very important consideration for most people. Compare the cost of different plans from a range of providers but avoid compromising on the level of cover that you take simply to save a few extra dollars a month
- The level of coverage available. When it comes to the level of income you can cover, the policies can vary from one provider to another. For example, some will allow you to cover up to 50 percent of your income whereas others may allow you to cover a higher percentage of your income.
- Any additional benefits. Some income protection plans may come with additional standard or optional benefits. Make sure you compare plans to see what each one offers over and above the basic income protection cover.
How income protection for miners can help
One thing that can offer miners peace of mind is having a specialist income protection plan to ensure that the financial impact of an unexpected injury or illness is minimised.
It is always important to consider how you would cope with your various financial commitments in the event of being unable to work and earn an income, particularly if you have become used to a relatively high income. Without your wage coming in, even paying bills and buying food can become a challenge.
Having specialist miner’s income protection in place means that you would still be able to bring in a percentage of your income even if you were laid up with an illness or injury, giving you vital breathing space to get back on your feet.
How much should a miner pay for income protection insurance?
Miners may have to pay a bit more than average to get income protection cover. But it all depends on the nature of your work and how much you earn. Figures from Payscale.com suggest the average incomes for various mining jobs:
|Profession||Average annual salary||Average monthly quote|
|Heavy equipment operator||$98,212||$158.07|
These quotes are examples only and are based on a non-smoking 35-year-old male from NSW. Your actual quotes may differ from those shown. These quotes are accurate as of November 2019.
How can I find the right income protection policy for me?
When you're shopping around for income protection insurance you need to have a clear idea of your individual circumstances and insurance needs. Here's what you need to look for:
- Definitions. If you're looking at income protection insurance make sure there is a clear definition of your occupation (and how you are covered).
- Stepped versus level premiums. Stepped premiums start out cheaper but increase over time. Level premiums stay flat (adjusted for inflation) but are higher. Learn more about the differences between the two.
- Benefit limits. Policies often have an upper limit for benefit payments. Always check a policy's limits, especially if you're a miner on a high income.
- Benefit period. Typically, income protection policies only pay benefits for a limited, defined period, usually between one and five years. Many policies don't pay out after the policyholder turns 65.
- Agreed value vs indemnity value cover. Agreed value cover policies let you set your monthly income, and thus the benefit amount. Indemnity value cover calculates your benefit amount based on your most recent income level. So if you have a fluctuating income, an agreed value cover might cost more but it lets you lock in a suitable benefit payment even if you're injured during a slow month.
I have workers' compensation: do I really need income protection insurance?
Australian companies are required to provide workers' compensation insurance to their employees, including miners. While worker's compensation can offer effective benefits if you are injured on the job, it is much more limited than income protection insurance.
The first problem is that workers' compensation is very different in each state, and it can be difficult to know what benefits you may be entitled to in the event of a claim.
- Depending on which state you are working in at the time of an accident, where you are living and what your employer’s workers' compensation arrangement are, you may be eligible for different benefits at different times.
- Some states offer lower benefits, have stricter injury, illness or disability requirements and shorter benefit periods than others.
- Depending on your location, employer and occupation, your workers' compensation might be managed by the state government, a private insurer or your employer.
Learn more about income protection and workers' compensation.
Extra benefits of income protection insurance
Here are some more reasons to consider income protection even if you have workers' compensation:
- Unlike workers' compensation, income protection pays benefits for injury, illness, disability and death even if it occurred outside the workplace, or for reasons unrelated to your job. To get workers' compensation you have to prove that the incident was a direct result of your employment.
- Benefits paid are typically larger, particularly in relatively high-earning areas of the mining industry. Each state has its own maximum limits for workers' compensation benefits and these might simply be too low. For example, NSW limits workers' compensation benefits to a maximum of $2,100 per week, which might not be enough for a family to live on.
- You also need to consider the increased costs associated with an illness or injury that may not be covered under your workers' compensation policy, such as transportation, over-the-counter medications and caretakers. Once you factor these in it might become more apparent that you can benefit from additional coverage.
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