Income Protection Insurance

Income protection insurance is vital for any tradesperson, but especially if you’re self-employed.

The insurance will help you if you are unable to work due to injury or illness.

What is income protection insurance?

Income protection insurance replaces a percentage of your income when you cannot work.

There are a number of factors to take into account when selecting your cover, each of which will have an impact on the premiums payable for your income protection:

Waiting Period

This is the amount of time you must be away from work for before you are able to claim on your income protection insurance. The shorter the waiting period, the more expensive the premium will be. The most commonly chosen waiting period for tradesmen is 30 days.

Benefit Period

This is the period of time you will continue to receive benefits for once you are off work. Most tradesman income protection policies have waiting period options of 2 years, 5 years, or all the way through to age 65. Some occupations and trades will be limited to a shorter benefit period. The longer the benefit period, the higher the premium will be.

Sum Insured

The sum insured is the amount you are covered for each month. Typically this amount is up to 75% of your gross income, before tax but after your business expenses. The higher the benefit amount, the more expensive the premium will be.