Being a tradesman and working in construction suits some people down to a T-beam ... it's a career that is easy to get into, but also offers a fabulous long term mix of activity and strength building, plenty of opportunity to advance and learn new skills, and ways to use your brain as well as your brawn. It is also a job where small illnesses can completely incapacitate you, and a career with an unfortunately high risk of injury. Income protection insurance is a must, and today we check out the features, options and watch-points for construction workers.
What features do tradies need in income protection policies?
The working conditions offered in construction usually mean that the following feature sets are preferable for construction workers:
* Partial disability payments: some insurers will offer a partial claim payment for partial disability. While other insurers may also offer special injury benefits for certain injuries even if you are still able to work!
* Agreed value benefits: Agreed value policies determine your benefit by your income at the time of application; indemnity value determines your benefit by your income at the time of claim. Agreed value policies usually cost more, but if you're a contract worker and are injured in an off-period, an indemnity value policy could leave you with a lot less cover.
* Waiting period: Your choice of waiting period depends completely on the sick leave and other leave you have available - having less leave available should mean a shorter waiting period is probably required.
Why are construction workers sometimes classified differently?
Every income protection plan classifies workers according to the inherent level of risk in their occupation. Construction is seen to offer unique risks and challenges by some insurers, so they may give employees their own classification. However, there are as many insurers that classify construction jobs in with others that have a similar risk profile.
Do I need a construction-specific policy?
Not really. If you happen across a construction-specific policy, be wary, and make sure you check its pricing, features and benefits against other similar, non-occupation specific policies. It may be little more than a marketing gimmick.
Can income protection cover tradie contractors for times without work?
Unfortunately not. There are very few insurers that pay out benefits for times of involuntary unemployment; even if they did, contract workers would probably not be eligible. You can look into getting mortgage protection, however, which may cover you for involuntary unemployment for a short period of time.
Trades and Constructions are professions that pays higher rates for cover ... but has cause to call in the policy more often also.
![[Valid RSS feed]](http://www.massagebyben.com/articles/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites 