Are you a resident of Queensland? Apply for an income protection insurance that suits your needs.
Queensland is home to many of Australia’s most popular tourist destinations, particularly for domestic travellers who come to take in the sun, sand and surf. If you’re one of them, and you get injured while travelling, would you be able to manage your finances?
It’s an important question for visitors and QLD residents alike. Income protection insurance usually covers you anywhere in the country, letting you take complete peace of mind with you as you travel. If you are unable to work due to injury or illness, income protection insurance will pay out a portion of your usual income (usually about 75%). This lets you cover expenses and maintain your lifestyle while recovering.
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If you live in Brisbane, Maroochydore, Cairns or another of Queensland’s hotspots it can be as simple as walking into an insurance provider’s office, although going with the first one you see might not get you the best policy or value. Comparing income protection insurance online is a good way of looking at different policies side by side in order to find the one that’s right for you. You can then either apply directly with the insurer or go through an experienced adviser.
Key considerations when applying
When doing so, there are some things in particular you should look at, including relevant limits, exclusions and conditions that apply. You might consider bundling income protection with life or health insurance, but it can also be a prudent standalone product. Your options here may depend on eligibility due to factors like:
- Pre-existing health conditions which might lead to frequent claims
- Occupation, like seasonal work, or part-time/casual rather than full-time
- Higher risk occupation or hobbies
- Alcohol and drug use, smoking and similar health concerns
Decide what level of cover you need, what you’re willing or able to afford, and what you want protection from in particular. Decide on flexibilities and think about what they actually mean in the event that you have to make a claim. For example, if you choose a shorter waiting period it means you can claim for shorter periods of being unable to work, but it will also raise your premiums, as will making frequent claims.
Location will affect your premiums according to risk level. For example, in Brisbane your income protection insurance premiums may be higher than in rural Queensland because of the higher risk of traffic accidents.
Lower premiums usually mean you have less cover which is why it’s always good to carefully go over the policy to work out what the exact trade-off is. Try to resist shopping for income protection insurance by price alone.
You need to:
- Find out how different features affect your premium.
- Consider limits, policy duration, waiting periods, and make sure you’re clear on them.
- Find something right for your income level. The more you earn the more it will cost, but you get more from claims.
- Know how you are impacting your premiums. For example, depending on the Queensland insurance provider, surfing on different beaches more or less frequently might have different effects on your premiums.
What personal details will I need to provide when applying for income protection?
Your income protection insurance provider will need information including:
- Your job(s)
- Usual monthly income
- Hobbies and interests
- Relevant health issues
- Any unhealthy lifestyle factors
Income protection insurance and QLD worker’s compensation are two different things.
- QLD worker’s comp is only for getting injured at work, or getting sick directly because of the job. For example, it would pay if you put your back out moving crates in a warehouse (assuming it was your job to do so). It would not pay out if you got run over while crossing the road on your lunch break.
- Income protection insurance will pay out no matter how you got sick or injured, and whether or not it was job related, as long as the injury is covered by that insurance policy and is not excluded.
Queensland’s stamp duty tax 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.
Here are the additional stamp duty charges state by state
|New South Wales||5%|
In Queensland and the rest of Australia, you can claim the cost of income protection insurance premiums as a tax deduction, but only the income protection part. So if you have combined income protection and health insurance, only the premiums from the income protection part are deductible.
If you make a claim, any income protection insurance payments made to you are taxable and must be declared.
The tourism industry is booming in Queensland. It can be hard to find good income protection insurance while working in this industry due to the seasonal nature of many jobs, and the income fluctuations that come with it, but there are some policies that you are eligible for to fill in the gaps left by worker’s comp.
For example, if you’re a surf instructor and a shark takes one of your legs while on the job, that would be a case for worker’s compensation. However, if you were to injure your leg in a car accident, income protection would come in handy.
Here, income protection insurance would pay a portion of your usual surfing instructor income for defined benefit period.
All income protection insurance plans come with some typical conditions and exclusions. Some of the more common are:
- Plans will generally not pay out if you were injured while doing something illegal or acting exceptionally irresponsibly.
- They will not pay 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 without an approved medical doctor saying so.