Find the income protection insurance that’s right for your needs, anywhere in Victoria.
Victoria and Melbourne are home to some of Australia’s top destinations, and the metropolitan atmosphere is second to none. By taking steps to protect yourself with income protection insurance you’ll be able to maintain the lifestyle you’re used to no matter what comes your way.
Income protection insurance will pay out a portion of your usual income (usually 75%), until you’re able to get back to work or the policy runs out. This lets you take care of yourself and your family even if your reason for claiming wasn’t the result of a workplace injury.
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To get income protection insurance in Melbourne, you can often visit insurers in person and speak to them directly about the terms and conditions, as well as the finer details of coverage. Insurance brokers around Victoria can also be an excellent way to get the right policy. Alternatively, you can apply for income protection online with:
- An adviser
- Directly with an income protection brand
In regional Victorian 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.
When browsing income protection insurance policies, some of the most important things to look at are the limits, exclusions and conditions that may apply. The expansive range of income protection insurance providers in Melbourne and around the rest of the state means you will often be faced with the option of bundling income protection along with life or health insurance. This might get you better value for money, or it might leave you paying too much for too little. It’s also possible that you’re not eligible for many of the available policies, due to factors like:
- Pre-existing health conditions. Eg. recurring illnesses that would cost the insurer a lot of money
- No full-time work or consistently guaranteed income.
- A more risky occupation
- Drug use, both prescription and not
- Smoking and similar health concerns
You will need to think about the level of cover you want, and consider the available flexibilities. Lower premiums usually mean you have less cover, so read the conditions carefully and try to avoid shopping by price alone. Income protection insurance in particular may have seemingly less consequential details, like duration of cover, that actually make an enormous difference should you ever have to make a claim. Always think about what the terms and conditions of a policy actually mean for your payout.
- Consider different excesses to get lower premiums.
- Look at limits, duration and waiting periods, and make sure you’re clear on them.
- Find a policy that works for your typical monthly income. The higher it is, the higher your premiums will be.
- What do you do in your spare time? Recreationally playing rugby in rural Victoria is riskier than taking a cooking class in Melbourne, and will cause correspondingly higher premiums. Insurance providers consider these differently, so compare options.
What details will I need to provide when I apply?
Your income protection insurance provider will ask for details like:
- Health issues
- Lifestyle factors
Income protection and worker’s compensation are two different things. Worker’s compensation in Victoria only covers accidents in the workplace, or illness and injury suffered directly because of work. It offers limited income protection of 80–95% of your pre-injury average weekly earnings (PIAWE), up to a maximum of twice the state of Victoria’s average weekly income.
Income protection insurance, on the other hand, will protect you if the injury or illness prevents you from working, as long as the policy includes it. It protects you outside the workplace as well as inside, and most policies cover you anywhere in Australia.
Stamp duty is a financial services tax placed on a variety of financial service products, including income protection insurance. In Victoria, it is 10%. This amount is declared and paid for by the insurance company, but they pass the cost on to their customers in the form of higher premiums.
Stamp duty of income protection by state
|New South Wales||5%|
The service industry is Victoria’s fastest growing sector, encompassing people working all across its thriving shopping, nightlife, restaurant and recreation scene. As a worker in the service industry, your income protection insurance options may be limited by a fluctuating income due to getting more or fewer shifts, seasonal work, gratuities and more. The paygrade also skews low compared to other industries, meaning so are the payouts and premiums.
Insurance brokers can be helpful when it comes to navigating complex insurance issues. You can find a lot of income protection insurance brokers in greater Melbourne and Victoria at large, and they’re particularly good at helping business owners with insurance for employees.
Insurance brokers are good for income protection insurance in Victoria because they can help you with issues such as:
- Double-ups in coverage between life insurance, health insurance and income protection insurance
- Considering all the options, such as bundling income protection with other policies and finding discounts
- Making claims
- Clearly explaining confusing parts of your income protection insurance policy
- Answering any questions or walking you through the steps needed to find a policy that works for you