The Best Income Protection for Carpenters

carpenterAs a tradesman, you need to ensure that you are protected in all instances; both on and off site. An injury could have a major impact not just on themselves and their family, but it could potentially mean loss of work as well.

Statistics show that it is more likely males experience an injury more than females, this puts the workers of the trade industry which is male dominated at further risk. Statistics show that nearly a staggering 10% of construction workers injure themselves at work. 


It is essential to think about how you and your family would cope if an unfortunate event were to happen leaving you with an illness, premature death or with an injury that stopped you earning you regular income for three months or more. Is this something your family and you could cope with financially along with the stress of the illness/injury? 

Workers compensation should not be relied upon as a primary source of income to support your family and financial commitments. You must ensure that not only have you covered yourself for the on-site injuries that you may face bit also the injuries you may face out of work hours that could leave you put of work for a period of time. 


Income protection is there to help you protect yourself and your family, your ability to do your job adequately and if something were to happen,  you would have this to fall back on to cover your debts if you fall sick or become injured.

Tax Deductible Premiums

Did you know that Income Protection is Tax Deductable?  By protecting your income you can also lower your taxt bill at the end of the financial year.  This means that Income Protection Insurance is not only a sensible decision, but also more affordable!Tax Refund - Red Button

This is how it works: if you were earning between $81,000 – $180,000 then you pay tax at the marginal rate of 37 cents in the dollar, if your monthly premium is $160 then your premium paid will be reduced to $100.80 per month, a saving of $59.20 a month just by claiming your premium as a tax deduction at the end of the financial year .

Your tax accountant will be able to provide you with further information in regards to claiming your income protection premium as a tax deduction.

Income Protection Insurance and its Types

Types of Income Protection

· The Indemnity value ; with this type of cover, you are required to show proof of your income at the time that you apply for IP, however at the time of claim, you will be requested to provide documentation which shows proof of your income. The value of your monthly payment is bound to 75 percent of your gross income or the sum insured whichever is the lesser amount.income-protection-insurance-choose-the-right-policy-and-cover

· The Agreed value policy; with this sort of cover, you provide proof of income during the application, and you won’t be required to provide income proof at the time of claim. This also means that regardless of a decrease in your income, you are paid the agreed monthly benefit. The premiums of agreed benefit are approximately 20 percent higher when compared to Indemnity value income protection policies.

The cover that you should choose ultimately comes down to your personal situation. Agreed value income protection policies are likely to be beneficial for those such as self-employed persons who may have fluctuating income or females who are likely to have children in the future and take maternity or unpaid leave and when they return to the workforce, they may rejoin with a lower income. Indemnity value income protection policies are generally cheaper although if there is a decrease in your income, it allows your insurance companies to also reduce the benefits you receive at the time of claim.

At IncomeProtectionOne we have advisers available to help you make the right decision for yourself, we can help you understand each of the different policies and how they may relate to your personal situations. We can also provide assistance through the application process.

Preexisting Medical Conditions

Pre-existing medical conditions are medical conditions that are diagnosed by a healthcare professional such as a doctor or general practitioner before you apply for and are issued a personal insurance policy.pre-existing-medical-condition-travel-insurance

Having a preexisting medical condition bring many myths to clients such as higher premiums or not being accepted to cover. Here are some common examples and explanations to myths that exist around applying for insurance with a preexisting medical condition.

·         Not being able to get cover because you have a preexisting medical condition

There are many persons who have preexisting medical conditions and have had no problems getting adequate insurance cover for themselves. It shouldn’t be assumed that just because you have a preexisting medical condition that you cannot be covered, you can always call us up for a quote and ask if you can be covered under your existing conditions.


·         Assuming your preexisting condition won’t be covered

It is not always necessary that an exclusion will be placed on your preexisting condition. All of this is dependent on the condition, the sort of benefits you want to be covered for. preexisting medical conditions.


·         Having a preexisting medical condition means getting medical examinations done

Getting medicals done is not always the case when you apply for insurance. Sometimes, if you get regular checkups done for your relative medical condition; the insurer may just be able to obtain your most recent test results from your doctor.


·          Old preexisting conditions, do we need to disclose them to the insurer?

It is your ‘Duty of Disclosure’ to make sure the insurer know of any preexisting medical conditions that may have an effect on your insurance application. If these conditions are not disclosed at the time of your application, the insurer can deny you the benefit payments at claim time.


Most preexisting conditions can be covered and our dedicated team of advisers will be able to answer any queries you may have of your preexisting conditions and how they may or may NOT affect your application for insurance.

Income Protection Policies and Tax


Income Protection premiums that you pay against the loss of your income are generally tax deductible.

Generally, tax deductions aren't available for people where premiums for insurance policies are paid to provide lump sum payments in events that cause death or are traumatic. Which is why, care is to be taken to make sure that any tax deductions that are made are only made for the premium that is directly related to the income protection part of the insurance policy.

If you are ever unsure of what your premium is made up of you can always find out by contacting you insurance company and ask for a detailed policy schedule which provides you with the policy number and the amount of premium you pay on each respective portion of the insurance policy.

For any further information on insurance policies, please call us and one of our dedicated staff members will be able to assist your queries or provide you with quotes if you are interested to know more.