If you play football regularly, then you should consider finding Income Protection.
Australians love football. No matter whether you’re talking about rugby league, rugby union, Aussie rules or soccer, our nation is obsessed with all the football codes.
According to the Australian Bureau of Statistics, one-third of the Australian population play sport twice or more per week. Unfortunately, playing football of any kind puts you at risk of suffering a serious injury.
Why should I consider income protection?
Income protection insurance is designed to cover you in the event of injury. It ensures you have a steady stream of income coming in while you’re unable to work, eliminating financial worries from your life and letting you simply focus on your recovery.
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- What's the benefit of Income Protection Insurance for footballers?
- How might my income protection policy be adjusted if I'm a footballer?
- Definitions of football in Australia
- Can I obtain income protection cover if I am semi-professional or professional football player?
- Do I need to disclose that I play football when I apply for income protection?
- Does 'complimentary interim' income protection cover football injuries?
- Can I claim a tax deduction on my income protection policy premiums?
What's the benefit of Income Protection Insurance for footballers?
Income protection insurance is designed to provide you with much-needed coverage when the unexpected happens. Income protection can cover you for a:
- Predetermined level of your income. This is usually up to 75 per cent of your salary.
- Monthly income protection benefit to provide a steady income stream. You can keep paying your mortgage, repay other debts and manage day to day expenses.
- Specified benefit period. The amount for the period of time that injury or illness keep you out of the workforce.
You may be subjected to a different policy
It’s important to point out that your sporting pursuits may cause insurers to judge you as presenting an increased risk to insure, so you may have to pay more for your premium.
How might my income protection policy be adjusted if I'm a footballer?
There are a number of ways that a footballers income protection policy may be adjusted to allow them to be provided with cover:
- Premium loading. A premium loading is applied to income protection policies to reflect an increased risk of claim. If you’re an amateur footballer, a 25 per cent loading will be applied to your insurance premiums, meaning you’ll obviously have to pay more for coverage than non-footballers.
- Extended waiting period. An alternative option your insurer may offer takes the form of an extended waiting period. While the typical waiting period (the time you must wait after becoming injured or falling ill before you can receive a benefit) may be 30 days, your insurer may stipulate that the waiting period for any sports injuries you suffer last 90 days. Injuries to areas of your body that have been previously affected by sporting injuries will also be included in this extended waiting period.
- Exclusion. The other course of action your insurance provider might choose to take is to simply add an exclusion on football to your policy. This means you won’t have to pay any extra fees or more for your premiums, but you simply will not receive any cover for injuries you sustain while playing football.
Definitions of football in Australia
Football has an ambiguous definition in Australia and it can refer to:
- Soccer
- Rugby League
- Rugby Union
- Australian Rules Football
- Touch Football
- Gridiron / American Football
- Touch Football
- Oz Tag
This will vary with each insurer and what they will consider a contact sport. As a general rule of thumb, it's a good idea to disclose your lifestyle with your insurer including any sports you play.
Can I obtain income protection cover if I am semi-professional or professional football player?
While income protection coverage is available for amateur footballers, the issue gets a little more difficult if you’re a semi-professional or professional player. For example, if you’re receiving small match payments for taking to the sporting field, your insurer may reject your application for cover. Other insurance providers, meanwhile, may offer cover based on a strictly case-by-case basis. Speak to your insurance provider and shop around to see what different companies have to offer.
Professional players may be excluded
Unfortunately, most Australian insurance providers will not offer income protection cover to professional sports players of any kind. A small number of providers may consider offering cover on a case-by-case basis, but the majority will not.
Check with your sporting association
If you’re a member of a sporting association, check to see whether the association has a national insurance scheme agreement in place to provide you with cover if you get injured. Membership of a players’ association may also make you eligible for a group insurance policy to provide some cover if you suffer a career-ending injury.
Learn more about income cover for professional sports players
Do I need to disclose that I play football when I apply for income protection?
No matter what type of life insurance product you’re applying for, it’s essential that you provide honest and accurate information to your insurer. Be upfront and honest about your football activities and supply and information your insurance provider asks for. If it later emerges that you did not fully disclose all relevant details to your insurer at the time of applying for coverage, any future claims you make could be rejected.
Does 'complimentary interim' income protection cover football injuries?
What is complimentary interim income protection?
Most insurance providers will provide complimentary accidental injury cover for applicants while the insurer is processing their application.
Check with your policy for exclusions
It is not uncommon for insurers to have an extra set of exclusions applied to this cover for when a benefit will be paid. As an example, AIA will not provide a benefit for total disablement that has occurred within the interim period if it is a result of a football injury. It is crucial to be aware of the these exclusions prior to taking out cover.
Can I claim a tax deduction on my income protection policy premiums?
In Australia, most premiums for income protection insurance policies are considered to be tax-deductible by the Australian Taxation Office. Your policy needs to be shown to be linked to your ability to generate an assessable income, while your policy cannot be related to death or specific injuries.
Income protection insurance is a vital consideration for many Australians, but for those of us who play any form of amateur football it can be even more important. Income protection insurance is designed to help lessen the financial burden if you’re unable to work due to illness or injury. If you injure yourself or contract a serious illness and are forced out of the workforce for an extended period of time, this type of cover will ensure you still have money coming in and you can continue to provide for your family.
