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Income Protection Insurance

Discussion in 'General Motorcycling Discussion' at netrider.net.au started by Supernego, Jul 12, 2007.

  1. For Full Time & Part Time employees.

    I have Income Protection Insurance and I want to advice you that you should get one too.

    IP Insurance would pay you most of your salary, if you end up in hospital or in recovery after an accident. We all ride motorcycles and know that in any given Sunday, we might end up on a hospital bed, with multiple fractions or other injuries that would keep us out of work from a month to 6 months.

    Having no income when you are in bed and looking at the bills pilling up is the worst thing you can hope. Some will have to sell their assets; some might sell their house.

    This is part of our choice to ride two wheels instead of four.

    If you do not have private health insurance, you can survive, as ‘Gough’, 30 years ago, made sure that we are all covered by Medicare. But no one will pay your bills (except if you are superrich or you inherited a waterfront house, in which case p*sh off!!)

    IP Insurance will help. And here is the magic word “YOU DON’T HAVE TO PAY†for it. You can arrange to get IP Insurance payed by the Super that your employer is paying for you. Most of the Superannuation funds provide insurances for death and permanent disabilities, which area all good, but also for IP Insurance. They would usually pay up to 75% of your salary.

    I have my Super with Just(.com.au). They sell IP Insurance from ING and I have the 75% payable after 30 days of the accident. The first 30 days I am covered by sick or annual leave. The premiums are about 1/3 of my Super. When I weight the loss of 1/3 of my Super, which will be available when I am 65, with the potential severe blow in my life, if I have an accident today, I said f*ck that. You can buy IP Insurance with your salary and leave Super alone, but I bet he who has money to spend for insurance, must have other ways to protect his economical future ( rich bastard!!)

    Some Super funds will only give you a 60 days waiting period. Change Super. Two months is a long time and it is the duration that most of the accidents would keep you off work. Go for the ones that give 30 Days.

    If you thing this is a bit over the top, think of this: The image you get from the road is bias; it only shows people standing on their feet. The rest have been dragged in to hospital beds. So find yourself a free day and go and visit any trauma wing of any public hospital. Talk to them and ask where is the pain, at the bones or at the pocket.

    Safe riding too all.

    Disclaimer: I am not a CEO of an insurance company or a dealer or have any affiliation or income derived from any insurance company. I found the above situation as the best that fits me and I thought that I should share it with you so you can benefit too or so you can show me something better..
  2. Funny, I've been looking into this in the past couple of days. I to have D&D insurance with my super fund, but I'm not sure yet if they do IP insurance.

    Agree with your sentiments of it being a necessary thing for peace of mind after an 'off'.

    edit: just found out that my super offers IP cover with..............

    wait for it...................

    90days waiting period! :shock: :roll: :evil:
  3. Good post, Tony. Just one question. Is this sort of insurance available for people who do not have full-time jobs? I work a couple of days a week on IT support at a school, and may or may not be called in on 'spot' days at other schools.
  4. Bearing in mind that Victorians already have this if you have an off - it's called the TAC. :LOL:

    Having said that it's still a good idea to cover any gaps between the max TAC payout and what you earn - but check the policy to make sure.
  5. how to switch super? which super is good? i think my current auto-assigned super is bit dodgy
  6. I looked into this before I changed my super over to AMP - I must give them a ring and get it sorted!

    Supernego is right - it costs almost bugger all to bundle it in with your super, and will instantly pay for itself and more if you need it.

    It doesn't just cover bike injuries too: a longer term illness or health issue that prevents you from working can be covered, even in a stack that's not your fault it can fill the gap between stack and when you're compensated by the at-fault party's insurance co., some plans even cover unemployment periods.
  7. True, but with independant IP insurance you can govern your level of cover, not just the 'bend over and we'll give you what we want to' TAC insurance.

    Keeping in mind the TAC is one of, if not the, lowest paying insurers for income protection. By this I mean (and these figures are approximates and old) a permenant disability payment from the TAC has a cap of about $600k for a previously fit healthy 25yr old. Workcover's cap is somewhere closer to $1mill, and a civil suit claim is unlimited! Given that this person would have previously had the ability to work another 35yrs, this is a crappy payout! 35 x $50k(less than average annual income) = $1.75mill so they have reduced your income by ~2/3's over the next 35yrs. And I know this money will earn interest if paid in a lump sum, but not if you need it to survive it won't.


    Same person, same injury-

    in a motor vehicle ~$600k max payout

    at work ~$1mill max payout

    just in public not covered by TAC or Workcover $$$$$$unlimited max payout!

    So if you're gonna have an accident, better to do it on your own time and not in on a public road!
  8. Maybe someone can answer a question for me: I have been told that since my income was casualised a month ago, I would be uninsurable under most IP plans. In fact, I was also given to understand that TAC would not honour any claim for income since my income is now not at a regular, standard rate.
    I don't know if this is true or false.
    Anyone able to shed some light on that?
  9. I don't know about the uninsurable part, but TAC would just average out a given number of weeks wages to obtain a figure.
  10. TAC will honour an income claim but you'll need some sort of proof of income - group certificate would do or payment details over a period. As for insurance companies, they are all different - I suggest asking a broker to chase it down if you want it. It could save you a lot of work.
  11. Like someone else said TAC cover up to 80% of your wage, as long as your licensed and have your bike registered. Im employed full time aswell, not sure about casual.
    They've been paying my income for the last 3 months. No dramas.
  12. That's not entirely true. You don't need to be licenced or registered to be covered by TAC, just have the accident happen on a Vic public road, involving a vehicle.
  13. Even more than that, if the vehicle is registered in Victoria - then you are covered anywhere in Australia. You are even covered for income loss under somecircumstances if it is in Victoria and you are unregistered or unlicenced or even over .05. However you are always covered for medical and rehabilitation costs. Of course if you are a passenger then you are covered in Victoria anyway - even if it is unregistered.
  14. When I got this job, IPI was offered as part of the Super package, and both offered as a salary sacrifice option :grin: It's costing me SFA. It was a large part of the decision to jump ship from my last job (as an aside, those pr!cks are now invoking the Johnny Howard "work choices" to their best advantage :evil: )

    There's a few things I regard as mandatory for me, as a bike rider, over and above decent protective gear.....

    In-sewer-ants for the bike, regular, professional, riding skills updates, Regular blood donations, and if you can afford it, income protection and health in-sewer-ants.

    Hornet, anyone can get IPI, it's just a matter of cost. I'd imagine that the potential payout for you, as a result of being part time employed, would be a lot less than a full time employee. Ask the school beancounters, and your the super fund.

  15. indeed. i got IP insurance within two days of buying my first bike. probably need to up it a bit now. thanks for the reminder. c x
  16. In fact, with some super funds you may already have it as part of the whole deal. Check it out.
  17. Another thing for commuters to keep in mind is that if you are involved in an accident on the way to or from work, you are covered by WorkCover. I thought about getting IPI when I started riding, but as I only ride to and from work (VERY rare for me to ride any other time), I am covered by WorkCover. Probably I am in the minority though (i.e not riding except when commuting).

    Oh, and should also add that this is definitely the case in QLD, not certain about other states.
  18. i have it bundled with super and they just deduct premiums automatically.
  19. Athritis in my right knee stops me from getting any income protection. Would have got it otherwise. Annoying!
  20. In Victoria to and from work is a TAC cover - it's workcover for non-TAC stuff though.