Know Your Options In Income Protection Insurance Underground Mining
When you work in underground mining, it can be very difficult to get income protection insurance.
This is because in comparison to many other occupations, mining can be quite dangerous and underground miners are exposed to various risks when working underground, including using heavy machinery and handling explosives.
Many insurance companies are unwilling to take up the risk of covering individuals in such occupations. Income protection insurance is designed to pay a percentage of your income in case of illness or injury that temporarily hinders you from working.
Go to ATO to learn more facts about the insurance for underground miners.
Big mining companies often have their own employee insurance schemes that would provide income protection. However, the insurance policies obtained through such schemes may not be suitable to meet your personal financial situation. While obtaining income protection insurance in Australia is not the easiest task, it is still possible to get such insurance. A number of insurance companies in Australia actually offer income protection for underground miners, and the best part is that the application process is generally the same as that for an office worker.
When looking at different insurers, you are certain to come across those that do not offer any cover to underground miners. There are also those that only offer limited cover, while a select few offer comprehensive coverage to underground miners. These have a good understanding of the mining industry, with some even specializing in offering coverage for miners. Read: Ways of saving money
You need to compare income protection products from different insurers before you take out your policy. Note that the cover offered by insurers to underground miners vary dramatically. In addition, the pricing varies greatly depending on the insurer you choose. Income protection insurance quotes can be a very helpful resource when comparing different rates from different companies. However, you should not select an insurer or any particular insurance product based on the price alone. Certain considerations should also be made.
It is also important to consider the benefit period attached to a policy. Some insurers will limit the benefit period to even 2 years. The waiting period is also chosen when you are taking out the policy. While most people choose a waiting period of 30 days, you can choose a shorter or longer period. A longer waiting period usually makes for better premium rates on your policy.
When selecting the amount of coverage you need, keep in mind your current income. The payment you get should provide a regular income stream to allow you to meet your family’s daily living expenses. However, the maximum amount you could possible get from a retail policy is 75 percent of your normal income, or a higher amount if your obtain coverage via superannuation. Whatever the case, the amount will not be the same as your income.
When applying for income protection insurance underground mining, you may be asked for details concerning your working situation. It is important to be as honest as possible during the application process in order to ensure that you will actually get your benefits should you need them. It is also advisable to speak to your financial planner so you can identify the ideal insurance provider whose income protection product will suit your needs.