Does Income Protection Apply To Part-Time And Casual Work As Well?
Being a part-time or casual worker offers you more flexible working hours and a higher equivalent rate of pay than full-time workers. However, casual workers may have to compromise on job security.
Full-time employees receive sick leave and workers’ compensation protection, a benefit that is lacking within many part-time & casual jobs. While there has recently been a push to include these benefits, nothing is set in stone.
Part-time employees in Australia are not always guaranteed regular working hours and are not eligible to be paid sick or annual leave. Because of this, casual employees may require other options like income protection insurance to protect their income.
Income protection is an insurance policy which pays you a monthly amount of up to 85% of your regular income, if you are not able to work due to an injury or illness.
This can help you to survive financially until you recover and return to work, even if you don’t have workers’ compensation or paid leave.
However, income protection does not cover being unable to work due to a workplace shut down.
Always worth listening to Professor Sara Charlesworth, Director of @RMITCPOW. Here, on the increase in casual workers in Australia over the last couple of decades, and why we should be urgently concerned about their working conditions. #gigeconomy #decentwork https://t.co/ShGXjACJw0— Decent Work Regulation (@UnacceptableFoW) November 24, 2020
Can You Apply For Income Protection Insurance If You Are A Part-Time Or Casual Worker?
Yes, you can apply for income protection insurance as a casual or part-time employee, but you may need to satisfy certain requirements. To apply for income protection insurance, you usually have to either be an Australian citizen or a permanent resident with the appropriate working visa.
Some insurers also require you to be working at least 20 hours per week.
Again, depending on the insurance company and the policy you choose, you may also be required to have been working in your position for at least 12 months with no breaks in your employment.
If you are working in an industry with a high risk of accidents such as construction or long-distance truck driving, it can be a little more challenging to get income protection insurance. You may need to get a policy with a more extended waiting period and a shorter benefit period than average. This is done to offset the high-risk nature of your job.
Do You Need Income Protection Insurance If You Are A Part-Time Worker?
Casual workers usually don’t have access to the same job security as full-time employees. So, depending on your financial situation, taking steps to protect yourself from loss of income from illness or injury is essential.
Income protection insurance is the best thing you can do to protect your most important asset. This way, you can continue to receive a monthly payment, which will help you take care of your finances, even if you are not working. Also, you can entirely focus on your recovery without worrying about any bills and mortgages.
The Cost of Income Protection Insurance for Causal Employees
The cost of income protection cover is similar for casuals and full-time employees in the same occupation. However, the cost of insurance can be influenced by several factors like age, gender, occupation, chronic diseases and smoking habits.
If you are looking for income protection cover in Australia, contact Aspect Underwriting. They have a strong offering for casual & part-time workers without the restrictions mentioned earlier regarding hours worked etc. Aspect can provide you with one of the best income protection insurance quotes in Melbourne.