Should Tradies Bother With Income Protection?
Income protection is a popular form of insurance for tradies, however many tradesmen decide that they won’t bother with it.
The reasons that tradies give for not taking out income protection often come back to price and the belief that they won’t ever have to claim.
Here at Tradesman Insurance we always cringe when we hear of tradies deciding against income protection, as we know all too well how easy it is for a tradie to injure themself either on or away from the worksite.
In this guide we will take a look at some of the common reasons why tradies choose not to take out income protection insurance, and why they should reconsider.
What Is Income Protection Insurance?
Before we jump into the reasons for not taking out income protection insurance it’s important to understand exactly what it is. If you already know, feel free to skip ahead.
Income protection is designed to replace your income if you cannot work for a period of time due to an injury or illness.
Depending on the policy options you choose, income protection can replace up to 75% of your income all the way through until you reach age 65.
For tradies running their own businesses or working as subcontractors, income protection is absolutely vital since you have no access to sick leave or worker’s compensation.
For tradies on wages, income protection is still important due to the long term protection it can provide, and the fact that it can cover injuries causes at or away from the worksite.
It’s Too Expensive!
This is an excuse that we often hear from tradies when quoting their income protection.
It is correct that income protection isn’t exactly cheap, but if you choose your policy wisely it certainly doesn’t have to be expensive.
Many tradies can get income protection for less than $100 a month, and in some cases for no more than $50 per month.
Sure you could buy a couple of cartons of beer each month for that amount, but when looking at the quotes you need to consider the protection that it provides.
Another important consideration is that premiums for income protection are 100% tax deductible, even if you are on wages.
If you still believe that the cost of income protection is too high, speak to your trade insurance broker about other options which may mean you can get a more basic level of cover for a more affordable price.
I Don’t Need It!
This is a classic excuse for tradesmen, especially those of us at the younger end of the scale. All young men believe that they are bulletproof, and for tradies it is even more pronounced.
You may think that you never get sick and will never hurt yourself, but unfortunately good tradies are struck down everyday across Australia.
Some injuries may result in a few weeks off work, which most tradies will be able to get through. But what if you couldn’t work for a few months, a few years or ever again?
Unfortunately the manual nature of being a tradie means that tradesmen are extremely susceptible to injuries on the job and also away from the job.
Furthermore, tradies are also more likely to be unable to work due to an injury due to the need for full use of all limbs at all times. Unlike an office worker, a tradie can’t turn up to work on crutches with one arm in a sling.
A huge percentage of tradesmen will have to take a period of time off work at some stage of their life due to an injury or illness. You can choose not to be paid for this time, or you can take out income protection and make sure you are paid all the way through.
Still Think You Don’t Need Income Protection?
There are plenty of tradies out there who will never be convinced of income protection insurance.
If you fall into this category, why not give us a call and speak to one of our insurance advisers. They will be more than happy to tell you all about the tradies who they have helped through the process of claiming on their income protection policies.
Income protection is super important for tradesmen, and by using an insurance adviser who specialises in tradies insurance you can ensure you are getting specialist advice on the right cover for your needs and budget.
For more information please get in contact with us or request a quote via our online quote form.
