Miners, oil rig workers and other professionals who spend a large part of their lives working in hazardous environments need income protection insurance more than other professionals for two important reasons.
- The first reason is; these professionals are more likely to get injured or fall ill at work
- The second reason is; these professionals earn a significant amount of income while they are working hence they are more likely to suffer from income loss compared to other professionals.
While miners, oil rig workers and other professionals who work in hazardous or risky environments are offered workers compensation insurance in certain scenarios, this type of compensation plan isn’t enough for three reasons.
- The first reason is, workers compensation insurance offers limited compensation payments.
- The second reason is, workers compensation insurance only offers payouts when the employee is injured at work.
- The third reason is, workers compensation payouts are usually lump sum which means that the employee doesn’t get monthly payments for household expenses.
Income covers on the other hand; offer maximum payouts to employees and self-employed professionals when they are injured at work, elsewhere or they fall ill at work or elsewhere. This type of cover is not mandatory but is a must for all professionals who want timely payouts made every month to pay bills, repay loans or for other personal expenses.
The miner, oil rig worker or gas line worker has to work in the said profession at the time of application and may have to work for a minimum of maximum number of years in the said field. If the selected insurer offers guaranteed assured payments every month then, a minimum salary requirement may also be set by the insurer. Claim requirements include proof of profession, proof of income and proof of injury or illness. Some insurers may require more or less documents to be submitted along with the claim application.
- The maximum insured amount offered to employees who work in this sector is 75% of the employee’s pre-tax income. If the employee is eligible to receive superannuation perks from his employer then the insurer may take this into consideration and offer additional 8-9% compensation payouts annually.
- Like other professionals who work in dangerous or hazardous environments, miners are encouraged to take a policy that offers maximum payouts and additional benefits such as but not limited to a 24 hour worldwide cover and indexation benefit. The benefits of opting for add on plans or additional perks along with an income cover are undeniable however; buyers should note that at times opting for an add on plan such as trauma insurance or permanent and total disability insurance can result in them being exempted from getting tax benefits.
- Miners, oil rig workers and gas line workers along with other professionals who work in hazardous environments and earn high amounts of income every year are encouraged to opt for agreed value contracts for a few important reasons. The most important reason is that agreed value contracts ensure that you get maximum compensation payouts and guaranteed payouts when you file a successful claim. This type of contract may cost a few more dollars compared to indemnity contracts; however people who have fluctuating incomes benefit from an agreed value contract since if their income reduces while filing a claim then the compensation amount does not reflect this. The compensation criteria for agreed value contracts is based on the amount the buyer earns when he purchase the contract or applies for the contract.
Benefits of Income Protection
- The basic compensation benefits given to the policy holder can not only be used for basic needs but can also be used to either pay various bills such as credit card bills, phone bills, and outstanding vacation bills or to maintain his lifestyle. Once the payment has been released, it is up to the policy holder’s discretion to use the monthly payment as per his needs.
- The 24 hour worldwide cover is a must for those miners and other professionals who spend time away from their home country for work or other purposes. This cover can ensure that the policy holder is protected even when he is not in his home country and that claims are accepted and paid while the policy holder is travelling.
- The indexation benefit is a must for those miners and other professionals who want to purchase a cover that increases in value every year according to the CPI o Consumer Price Index. This benefit is meant to fight inflation and ensure that the policy holder gets maximum benefits from the chosen cover.
- The day one claim benefit and the guaranteed renewability benefit are paid benefits that usually have to be purchased separately. The premium waiver benefit is another perk that may have to be purchased separately for a nominal fee. The accommodation perk along with the rehabilitation perk and death benefit may be offered to the policy holder for no additional fee; provided he opts for a policy that supports these perks. To find out which benefits are offered with the basic compensation payouts, the policy holder should check the product disclosure statement which is a legal document given to the buyer at the time of purchasing a contract.
What to Remember
- The waiting period has two purposes which are; to keep premiums reasonable for buyers and to give the policy holder some time to understand his policy better before he can file a claim. Miners and other professionals who work in risky environments are encouraged to opt for a policy that offers the day one claim benefit since this perk can ensure that the policy holder has the option to file a claim during emergencies even while the waiting period is active. It should be noted that this perk will pay the compensation payout if the claim is accepted however the compensation payout along with adjustments if any will only be paid when the waiting period is over. Alternately, miners, oil rig workers and gas line workers can opt for a policy with a short waiting period of 15 – 30 days.