Income protection insurance for part-time workers
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In the past, insurers haven't been willing to offer income protection cover to anyone working less than 30 hours per week. Meaning that the 30% of Australians who work part-time have been unable to protect their income (1).
Australian insurers understand that the nature of the Australian workforce has changed so they have gone through a number of changes too. That is why insurance companies have produced an income protection insurance product that will protect those who choose to work part-time hours with many of these being women or mothers returning to the workforce.
Part-time workers income protection
Life insurance companies have expanded the qualification criteria for income protection insurance and now offer's cover to clients working part-time, working a minimum of at least 20 hours, at least three days a week.
How income protection insurance works for part-timer's
If you are aged between 19-50 next birthday, and working between 20 to 29 hours over three days per week, working in an insurable occupation, you're more than likely eligible for cover.
Income protection insurance provides 75% of your wages upon diagnoses of an illness or injury. This means that if you become sick or injured, which keeps you off work for longer than your selected waiting period, your insurance company will help you pay your bills and living expenses while you recover.
If your income has to work within a very tight budget or your family relies on your part-time income to pay for bills and put food on the table, then income protection insurance is a must.
Case Study: Melanie's income protection story
Melanie, aged 34, has been working part-time for the last 15 months as a Human Resources Consultant. She had previously been working in a similar full time role, however took 12 months maternity leave with her first child, Connor. The decision to come back part-time suits Melanie as she works three full days a week (22.5 hours) for her employer and has the rest of the week to spend with Connor.
Melanie's salary is $50,000 per year and her employer provides $250,000 life insurance and total and permanent disability cover through her superannuation. Melanie's previous employer offered her group salary continuance (GSC) cover through her superannuation however she doesn't receive GSC cover through her current employer.
Her insurance specialist suggested that she also take out income protection insurance to ensure her income is covered should she become unable to work through accident or illness.
Melanie is currently working 22.5 hours per week over three days and has been with her employer for over 12 months which means she is entitled to apply for cover.
1. ABS Australian Labour Market Statistics, July 2006
If you work part-time and want to ensure your income is protected, then compare a variety of policies from various insurance companies and choose the one providing you the best level of protection at an affordable price.
- Learn how to protect yourself against illnesses & accidents, including needlestick injuries, so you can continue to earn an income as a medical professional
- Compare income protection quotes for miners & discover policies suited to your budget & requirements. Discover other insurance types you might want to add.
- A guide to income protection for self-employed workers in Australia; sole traders & independent contractors, review the benefits & how it works
- Make sure your business will stay afloat if you’re not able to work because of sickness or injury. Business overhead insurance will cover the fixed costs.
- When you can’t get life insurance because of a pre-existing medical condition, or high-risk occupation, an accidental death policy can help protect you.
- Compare the difference between income protection and accident & sickness insurance. They might seem similar, but there are key differences.