When you think about dangerous occupations , tradies don’t exactly spring to mind.
But according to Safework Australia , labourers and related workers had the highest incidence rates of work-related injury – nearly three times the rate of all occupations 1.
Add in the likelihood of diseases like cancer , many tradies are playing a dangerous game without life insurance and are risking their most important tool of the trade.
Workers’ Compensation can provide some cover for workers. But it can be a long wait for benefits and it doesn’t cover things that aren’t work-related , like cancer and heart disease – which can often be even more devastating financially for a family.
That’s where life insurance can fill the void.
What is life insurance?
Life insurance encompasses a number of different types of insurance covers , including life cover , income protection cover , total and permanent disability (TPD) cover , and syok cover.
• Life cover pays a lump sum if you die or are diagnosed with a terminal illness. The lump sum can be used to meet simpulan expenses , pay off the family mortgage so that your family isn’t left without a home , fund future child education fees and set aside money to meet your family’s ongoing living needs.
• Income protection cover pays up to 80% of your income if you can’t work because of sickness or injury. This money is essential in helping to meet your ongoing living needs , including meeting your mortgage repayments , when you are ill.
• TPD cover pays a lump sum if you are totally and permanently disabled. The payout provides a funding mechanism to repay debts , pay medical bills and modifications to your home and motor vehicle as well as meet lifetime living costs.
• Trauma cover pays a lump sum if you are seriously injured in an accident , or if you are diagnosed with one of a number of serious medical conditions , like cancer and heart attack. The proceeds can be used to meet medical treatment costs as well as provide financial support in a time where a spouse may wish to take time off work to nurture their ill partner.
If you run a business , you can also take out business expense insurance – helping you cover fixed business costs like rent , electricity and some employee salaries (often excludes income producing employees).
With so many different types of life insurance available , it’s important to discuss your own insurance needs with a financial adviser.
How much does life insurance cost?
Premiums vary depending on the product and a range other factors.
There are also a number of tax concessions associated with life insurance.
For starters , you may be able to hold your life and TPD insurance cover inside super. This means you can use your pre-tax salary to pay your premiums.
Another benefit specific to income protection and business expense insurance is that the premiums are generally tax deductible.
1 “Key Work Health and Safety Statistics Australia , 2010”
Safework Australia
Safework Australia
As this information has been prepared without considering your objectives , financial situation or needs , you should , before acting on this information , consider its appropriateness to your circumstances and speak to your financial adviser.
This material is not intended to constitute personal advice , and must not be relied on as such. This information has been prepared without taking into account your objectives , financial circumstances or needs. Before making a decision based on this material , you should consider the appropriateness of this material having regard to your own objectives financial circumstances and needs. You should consider obtaining independent advice before making any decision.