Income cover or workers compensation?
What is the point of having income protection if there is workers compensation available?
Workers compensation pays a lump sum if you suffer an accident at work, or travel to or from work; whereas income protection provides a benefit if you suffer a sickness or accident, regardless of whether it is at work or not.
In comparison to income protection, a workers compensation benefit payment may not be enough to meet your needs. Another problem is that workers compensation payments vary from state to state, whereas income protection benefits pay up to 75% of your income.
Income protection insurance
- Provides coverage, 24 hours, 7 days a week, worldwide
- Covers both sickness or accident in or outside of work
- It can provide benefits in excess of AWOTE (Average Weekly Ordinary Time Earnings)
- Benefit payments are not capped and can continue to the end of your benefit period
- Benefits can continue until age 65, rather than being limited to a maximum of 4 to 9 years
Workers Compensation
Workers compensation typically offers 4 types of payments if you are injured as a result of a work related accident. These include:
- Income replacement,
- Permanent impairment,
- Death benefits, and
- Medical expenses.
Benefits payments may last anywhere between 13 weeks to 9 years, depending on which state you are in. However it should be noted that benefit payment are usually capped at a maximum limit under the lump sum (impairment) benefit, which varies state to state.
Income protection is work insurance
You can think of income protection insurance as a kind of work insurance, because it protects your ability to earn an income. The added bonus is that you are covered in and outside of work.
If your salary is vital to your livelihood, then income protection should seriously be considered. In times of dire need when you suffer from a sickness or accident, income protection can help pay for your mortgage, rent, medical costs and living expenses. Contact an xLife adviser today to protect your income and your standard of living.
Exclusive Offer! Call xLife on 1300 135 205 today and
save up to 20% on your first year's income protection premium.
May 2011
