Income Protection Insurance for White Collar Professionals

white-collar

Should office workers consider income protection insurance?

While office workers are not exposed to the same level of risk in the workplace as other industries, income protection insurance still offers vital protection against injury or illness.

What cover does income protection insurance provide?

Income protection insurance provides an ongoing benefit payment (usually paid monthly in arrears) in the event that you are unable to work due to serious illness or injury. This benefit is usually 75% of the workers salary though some policies provide over 75% if the extra portion is contributed to superannuation.

What can the benefit be used for?

The benefit helps ensure that you do not experience financial hardship while forced to take time off work. It can be used for expenses such as:

  • Rehabilitation costs
  • Everyday living costs
  • Mortgage
  • Rent payments
  • Children's education fees

Make an Enquiry for Income Protection Insurance for White Collar Professionals

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Compare income protection quotes from these direct brands

Product details Maximum cover Maximum Entry Age Cooling-off
(days)
Income Protection
Income Protection
Cover up to 85% of your income up to $10,000 per month if you can't work due to sickness or injury. Cover for over 1,000 jobs and full-time, part-time and self-employed. $10,000 60 30 Get quoteMore info
NobleOak Income Protection
NobleOak Income Protection
Receive up to 75% of your income each month to a maximum of $25,000 if you can't work due to serious illness or injury. $25,000 59 30 Get quoteMore info
Ezicover Income Protection
Ezicover Income Protection
Cover up to $12,000 income replacement when unable to work in any occupation due to sickness or injury. First month of cover is free. $12,000 60 30 Get quoteMore info

What are the risks of white collar jobs?

While the risk of both minor and major injuries at work are higher for construction worker than office workers, it does not mean that white collar work is risk-free. White collar workers are susceptible to chronic pain such as carpal tunnel syndrome, back and neck pains, and migraines. These little issues, when left unchecked, can build up and end up being debilitating. Common risks for white collar workers include:

Hazards of working at a computer

  • Sitting to long. Sitting for long periods at a desk can result in back injuries that leave you unable to work.
  • Glare. Improperly set up glare on your screen can have long term implications for your eye health.
  • Repetitive Strain Injury (RSI). This refers to injuries to your muscles or nervous system caused by repetitive tasks e.g. dialing the phone frequently.

Work environment hazards

  • Poor ventilation. Poor ventilation can lead to the build up of pollutants and a lack of oxygen.
  • Dirty air conditioning systems. Unsanitary air conditioning can carry nasty pollutants including bacteria and even decomposing animals.
  • Slippery floors. Office's can have slippery surfaces. In fact, major source of office place injuries are due to slips, falls and tripping over poorly managed floor surfaces.

Office equipment hazards

  • Kitchen equipment. There are both physical (e.g. sharp knives) and electrical risks present when it comes to kitchen equipment.
  • Inks and toners. Printer ink has been found to be hazardous when inhaled or physically touched. Toners are can overheat, which makes them a burn hazard when replaced.

Moving items in the workplace

  • Incorrect lifting technique
  • Lifting heavy objects
  • Repeatedly moving objects

These risks don't really worry me, do I still need income protection?

If the risk of working in an office don't seem significant enough to justify income protection then you should consider the fact that many injuries and illnesses can occur outside of the workforce. Without income protection, you'll need to fall back on either:

  • Savings
  • Family or friends
  • A loan

How much of my income can I get insured if I'm white collar worker?

This will depend on your individual job. Income protection can typically cover up to 75% of your regular income.

Sample of white collar incomes and how much is covered by income protection

Here's an example of the types of jobs and respective incomes based on a various white collar industries in Sydney.

PositionIndustryAnnual Salary75% of Annual Salary
Corporate Finance GraduateFinance$40,000$30,000
Senior Brand ManagerMarketing$120,000$90,000
Web DeveloperTechnology$70,000$52,500
Mail Room ClerkOffice Support$45,000$33,750

Source: 2016 Hudson 2016 Salary Guide

Can income protection cover high income white collar workers?

If you're an office worker in a high income position, the good news is that many brands can provide cover for high incomes. Maximum sums insured of $1Million and over are shown below:

ProviderInsurance TypeProduct NameMinimum CoverMaximum sum insuredHow to Apply
aia-com-auLife CoverAIA Priority Protection - Life Cover PlanNo minimumNo maximumEnquire
amp-com-auLife, Trauma and TPD CoverAMP Flexible Lifetime Protection – Death, TPD, TraumaNo minimumNo maximumEnquire
asteronlife-com-auLife CoverAsteron Life Insurance (Death Cover)No minimum$1,000,000Enquire
BT LogoLife CoverBT Term LifeNo minimum$1,000,000Enquire
clearview-com-auLife CoverClearView LifeSolutions Life Cover$50,000$1,000,000Enquire
comminsure-com-auLife CoverComminsure Life CareNo minimum$800,000Enquire
macquarie-com-auLife CoverMacquarie Term Life Cover$100,000No maximumEnquire
mlc-com-auLife CoverMLC Life Cover$25,000No general maximum though conditions may apply for cover over $15,000,000Enquire
onepath-com-auLife CoverOnePath OneCare Life CoverNo minimum$1,500,000Enquire
Suncorp 100pxLife CoverSuncorp Life ProtectNo minimum$1,000,000Enquire
tal-com-auLife CoverTAL Accelerated Protection - Life InsuranceNo minimumNo maximumEnquire
  • Incorrect lifting technique
  • Lifting heavy objects
  • Repeatedly moving objects

What can Income Protection Benefits be used for?

Income protection, as mentioned earlier, pays a benefit up to 75% of your gross monthly income. Rather than being paid a lump sum, the benefit is paid in monthly instalments. These funds can be used to cover bills such as mortgage and credit card payments, daily living expenses, and medical and health expenses.

  • Mortgage Payments. If you had to stop working because of an illness or injury, would you be able to keep paying your mortgage? Income protection can help you insure that in the event you are unable to work that at least you will be able to service your mortgage.
  • Credit Card Payments. Your credit card debts can accumulate a lot of interests when left unpaid. The monthly benefit from income protection can help you cope up with your credit card payments.
  • Daily Living Expenses. Income protection insurance can allow you to continue to pay your utility bills and other daily expenses should you be out of the workforce.
  • Medical and Health Expenses. When you suffer an illness or sustain an injury, it can be expensive. In addition, your injury or illness could be longstanding and the time of rehabilitation and recuperation might take longer than you expect. Income protection can help you meet the demands of medical and rehabilitation costs, especially if there are modifications to be made to fit your lifestyle change.

Compare income protection for white collar workers

William Eve

Will is a personal finance writer for finder.com.au specialising in content on insurance. While he cannot give personal advice to clients, Will enjoys explaining the intricacies of different types of protective cover to help individuals and businesses find affordable cover that won't leave them underinsured.

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