Are Casual Employees Covered In Income Protection Insurance?

Income Protection Insurance Casual Employees

If you depend on your monthly salary to take care of yourself or your family, your ability to work and earn that salary is your greatest asset.

If you are suddenly unable to work due to illness or injury, this could make your life a lot more difficult when your salary stops coming in.

If you are balancing mortgage payments, credit card debt as well as your everyday living expenses, losing your income and the possible medical bills resulting from ill health could be catastrophic. Income protection insurance pays up to two thirds of your income, allowing you to maintain a reasonable standard of living.

Is it available?

Income protection is particularly valuable for self-employed individuals and casual employees who rely on their income and do not have the benefit of sick leave. This is because your income stops coming in on the first day that you miss work. While many insurance companies do not provide insurance casual employees, there are those that do. However, you will probably be required to provide evidence of your casual income to take out a policy. Note that income insurance should not be taken out as replacement for worker’s compensation or private health insurance. Income protection is a long-term solution that should be tailored to work with other forms of insurance that are available to you.

How to get it

You can purchase insurance directly from an insurance company that offers income insurance to casual employees. You may also be a super fund member, in which case you could also obtain insurance through your super much more afford-ably. However, most super funds do not provide income insurance to casual employees and those that do often require you to opt in for such coverage as opposed to receiving it automatically. Again, you may be required to provide evidence of your income stream in order to get coverage.


When taking out your policy as a casual employee, you should consider how much money you would need to cover your debts and provide for your dependants. The whole point of income insurance is to receive an income stream in case you are unable to work without being forced to cash out your investments.


Insurance premiums vary greatly between different providers and this all depends on the protection level you require. Certain factors are also considered when determining the premium rates that will be applied to your policy, including your age, gender, occupation and previous medical conditions.

As a casual employee, it is extremely important to be aware of the terms and conditions attached to your policy, including exclusions. Income insurance for casual employees can be complicated, but there is no point in having insurance that will not pay out when you need it, click here for more information. You should speak to your financial planner to help you identify an insurance product that is suitable for you. Taking the time to consider all your options is important if you are going to get the best possible cover.