Live in NSW? Find the income protection insurance that’s right for your needs.
New South Wales is one of Australia’s most populous states, with a variety of people in all occupations and walks of life. Because of this, income protection insurance is easy to find, either by yourself or with the help of an insurance broker; the hard part is making sure you have the right cover for your needs.
Income protection insurance can keep you going if you suffer an illness or injury that prevents you from working. It does this by paying out a portion of your usual income, typically 75%, until you’re able to get back to work. Income protection insurance lets you focus on recovering rather than stressing over finances.
Can finder.com.au help me find income protection if I'm a NSW resident?
finder.com.au allows you to compare policies online and get a quote either with an adviser or directly with an income protection brand.
Compare cover directly with these brands
Some of the ways you can apply for income protection in NSW include:
- Online with an adviser
- Online directly with an income protection brand
- In person with a broker
In regional NSW areas, you’re more likely to have to contact an insurer online or over the phone, as it may be difficult to find insurance brokers in your area.
What should I be aware of when I apply?
When looking for an income protection insurance policy, you should be aware of the limits, exclusions and conditions that may apply. In NSW you will have the option of bundling income protection insurance with life insurance or health insurance, which might get you better value but might not be suitable for your needs. Your options may be limited by:
- Pre-existing health conditions
- A lack of consistent income or full time work
- A hazardous occupation
- Smoking and other lifestyle factors
- Drug use
You will need to make decisions on level of cover and flexibilities available. Lower premiums generally come at the cost of less cover, so try to strike a balance with an income protection insurance policy that protects you from everything you need without breaking the bank. Other options you will need to consider include:
- Do you want lower excesses and higher premiums, or higher excesses and lower premiums? Many providers will offer you a choice.
- Do you want to pay more for a longer cover period? Most policies have a maximum cover period, after which they will no longer pay your benefit amount. This can vary widely, from months to years.
- What’s your typical monthly income? The more you earn, the more the insurance company has to pay if you make a claim, which means you will pay higher premiums. Different income brackets have different income protection insurance needs.
- What do you want covered? You can often choose what you’d like covered, including options such as sporting injuries, car accidents, injuries sustained on holidays overseas, and other specific issues that you’d like to be covered against.
What details will I need to provide?
When applying for income protection insurance, you will need to provide details including:
- Health issues
- Lifestyle factors
- Anything else they ask for
Income protection and worker’s compensation are two different things. The main difference is that:
- Income protection. Protects you around the clock at home and at work.
- Worker’s compensation. Only applies to work related injuries and illnesses, sustained at work or because of work.
Workers compensation pays for recovery expenses, not income replacement
Income protection insurance will pay a proportion of your normal income, while NSW worker’s compensation is more focused on paying the costs associated with a particular injury or illness.
Stamp duty is a tax placed on a variety of financial service products, including income protection insurance. In New South Wales, the stamp duty is 5%, which will be declared and paid for by your insurer and factored into the cost of your premiums.
State by state income protection stamp duty comparison
|New South Wales||5%|
Insurance brokers can be particularly useful when it comes to navigating complex insurance issues. A broker can help you with issues such as:
- Overlaps between health insurance, life insurance and income protection insurance
- Considering all the options, such as bundling income protection with life insurance
- Making claims more efficiently and effectively
- Clarifying any unclear or difficult to understand parts of your income protection insurance policy
- Answering any questions or walking you through the steps
All income protection insurance plans come with some typical conditions and exclusions. Some common exclusions include:
- No cover if you don't actively seek medical treatment. A requirement that you must be actively seeking medical attention for injuries and illness, and following the advice of a licensed medical practitioner.
- Illegal activity and putting yourself in danger. Policies will generally not pay out if you were injured while doing something illegal or acting exceptionally irresponsibly.
- Payments inside the waiting period. Benefits will not be paid until the end of the waiting period (the minimum amount of time between being injured and claiming benefits).
- No proof of your inability to work. You cannot claim if you cannot prove an inability to work due to injury or illness, or without a licensed medical practitioner’s say so.