Work in the Northern Territory? Find income protection insurance to suits your needs.
Australia’s Northern Territory is home to some of the most majestic scenery and wildlife in the country, which is why it hosts over a million tourists each year. Whether you live in Darwin, the greater state or anywhere else in Australia, the right income protection insurance can protect you and your livelihood.
Income protection insurance will pay out a portion of your usual income, usually about 75%, if you’ve suffered an injury or illness that prevents you from being able to do your job. It will keep paying until you can return to work or the policy runs out. This means you can take care of yourself and your family should disaster strike.
To get income protection in Darwin, you may wish to visit an insurer in person to discuss the exact benefits available and to understand what all the terms, conditions, restrictions and limits mean. Alternatively you can compare policies online either via an adviser or directly with an insurer. In more isolated segments of the Territory, it’s still easy to take out income protection insurance online or over the phone.
Income protection insurance and NT workers compensation are two different things.
- Workers comp in NT only applies if you are injured at or because of work, or if you get sick directly because of the job.
- Income protection insurance will pay out no matter how you became sick or injured, or whether or not it was work-related, as long as the injury or illness is covered by your insurance policy and is not excluded.
Stamp duty tax in the Northern Territory is 9%. This financial services tax is placed on a variety of products, including income protection insurance. This amount is declared and paid for by the insurance company, and marginally increases customer premiums.
How does income protection duty in NT stack up against the other states and territories?
|New South Wales||5%|
In NT, as in the rest of Australia, you can claim the cost of income protection insurance premiums as a tax deductible, but only the income protection part. So if you have combined income protection and health insurance, only the premiums from the income protection insurance are tax deductible.
If you make a claim, any benefit payments made to you are taxable and must be declared.
Along with tourism, the NT mining industry is one of the state’s biggest earners. It’s classified as a high risk occupation, meaning income protection tends to be pricier, but also more necessary.
Getting the best income protection value for money in this industry is usually about finding a policy that covers the gaps left by NT workers compensation, or your health or life insurance policies if applicable.
Income protection insurance generally won’t pay out if you’re claiming benefits for the same injury from a different source, however it can still be useful if it pays more, because you can then choose who you want to get benefits from. For example, if you’re a NT miner injured on the job and covered by both workers compensation and income protection insurance, you can choose which you’d like to claim benefits from, and which terms and limits you wish to go with.
All income protection insurance plans come with some typical conditions and exclusions. Some of the more common exclusions are:
- A requirement that you must be actively seeking medical attention for injuries and illness, and following the advice of a licensed medical practitioner.
- Policies will generally not pay out if you were injured while doing something illegal or acting exceptionally irresponsibly.
- Benefits will not be paid until the end of the waiting period (the minimum amount of time between being injured and claiming benefits).
- 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.