Income Protection for Carpenters
Posted on August 7th, 2012
Income protection is not only a good idea, but for many carpenters in Australia it will actually be mandatory.
What Is Income Protection?
Income protection can replace up to 75% of a carpenter’s income if they cannot work due to injury or illness.
If you couldn’t work for a month due to an injury or sickness, would you be able to keen paying the bills? Most carpenters could cover that, but what if it was a few months, or even a few years?
Income protection insurance can help to ensure that you can keep paying the mortgage and keep food on the table for your family. It can give you the time to recover properly without causing financial stress.
An income protection policy will have a benefit amount, a benefit period and a waiting period. These options should be discussed with your insurance adviser before choosing a policy.
Which Carpenters Need It?
All carpenters can benefit from income protection, but it is most important for self-employed tradies and subcontractors. This is because they do not have access to sick leave or workers compensation in many cases.
Many subbies and business owners will find that they cannot enter the worksite without income protection. This is especially true for worksites operated by some of the larger building and construction firms.
Even if you do have access to sick leave as a carpenter on wages, income protection is still important due to the comprehensive and long term coverage that it provides. Sick leave is great, but it won’t last for long.
How Much Does It Cost?
The cost of income protection for carpenters is very reasonable, but it can vary greatly depending on a few factors as well as the options you choose.
It’s a fact that income protection will get more expensive as you get older. It will also get more expensive when insuring yourself for larger amounts.
The best way to find out the cost of income protection for you is to request a quote from a financial adviser.
Any financial adviser can give you a quote on income protection, but we recommend using an adviser that specialises in insurance for carpenters.
There are a number of firms which specialise in insurance for carpenters and tradesmen in general, and one such group in Trade Risk. They have a network of insurance advisers across Australia who can assist you with quotes on income protection and other forms of insurance.
For more information please contact your insurance adviser, and if you don’t already have one give the team at Trade Risk a go. Alternatively just search Google for ‘carpenters insurance’ to find an group that suits you.