Police officers spend a good part of their lives, fighting crime and keeping their city or town safe for citizens. Since these professionals have a dangerous profession, they require income insurance to protect their families in case the policy holder is injured due to which he suffers from income loss.
In addition, income covers can protect the police officer and his family if he falls ill or is injured elsewhere, such as while travelling or while playing sports. Income covers can also ensure that these professionals live a stress free life since these covers offer maximum compensation payments to those officers of the law who file a successful claim.
The basic requirements for income covers include being a permanent Australian resident and working in your current occupation for a minimum number of years such as 2 years; however this mainly depends on the insurer you have selected.
Some insurers may require full time employees to work for a minimum of 25 – 35 hours every week where as some insurers may require part time employees to work for a minimum of 10 – 15 hours every week. Claim requirements include, filing a claims form that has been filled out completely and submitting a claims form that is supported by the required documents such as proof of injury, proof of medical treatment if required and proof of income.
If the policy holder is aware that he is affected with any pre-existing medical injuries then he should inform the insurance company right away. If any new illnesses, injures or genetic conditions come to the notice of the policy holder then he should inform the insurer right away. Failure to do these things can lead to the policy holder lose his eligibility to file claims.
Although workers compensation insurance is offered to police officers in Australia, workers compensation insurance has many limitations such as a restricted payout is given only if the officer is injured at work while on duty.
Since officers of the law earn a limited amount of income, they require income insurance as much as other professionals, since people with a limited income often use their income for necessities such as paying bills or repaying loans and mortgages.
Hence for this reason, police officers are encouraged to opt for a policy that not only offers maximum compensation payouts but also superannuation benefits. The maximum compensation payouts offered by most policies is 75% of the policy holder’s pre-tax income. The maximum superannuation compensation perk given to the policy holder is 8-9% of his income.
Benefits of Income Protection
- The basic compensation payment given to the policy holder can be used for many purposes such as paying outstanding bills, repaying loans and mortgages or paying school fees of children. The basic compensation payment may also be used to take care of elderly parents, pets if any or for maintaining one’s lifestyle. The basic compensation payouts are given to the policy holder once he files a claim that has been accepted by his insurer.
- Since police officers are often underpaid and over worked, these professionals tend to be under stress a lot of the times which can lead to stress related medical conditions. The mental illness cover can prevent the professional from suffering due to loss of income if he is forced to take a few months or a few years unpaid leave due to health problems. Acute anxiety, acute depression; are only two of the many conditions covered by these plans.
- Additional benefits can also be expected from good plans and these additional benefits include a 24 hour worldwide cover, a death benefit, cheap add on plans, indexation benefits, guaranteed renewability benefits, premium waiver benefits, day one claim benefits and transplant surgery benefits. Cosmetic surgery benefits, accommodation benefits and rehabilitation expenses benefits can also be expected with good plans.
- The indexation benefit is an important tool that can be used to combat inflation since this benefit ensures that the value of the policy or the cover limit of the policy increases every year along with inflation. The CPI or Consumer Price Index is used to assess the new value of the policy every year.
- The day one claim benefit can cost an additional amount however; this perk ensures that you do not have to wait for the pre-decided number of days before you can file a claim. In the event of an emergency, the day one claim benefit allows you to file a claim even if the waiting period is active.
What to Remember
- Insurers in Australia offer a wide range of additional benefits to people who are physically fit and do not smoke. If you are eligible to receive these benefits, then you may be able to save a few dollars on premiums every month, this amount can add up and save you a significant mount in the long run. Paying premiums once a year in advance can also help you save money on premiums.
- The needle stick cover is not a must for police officers who purchase income protection insurance plans. This being said, the nature of their job will determine the final benefits that the policy holder should purchase.
- Indemnity contracts are cheaper and can be purchased by those police officers who earn a steady amount every year and do not have to worry about fluctuating income. If you are interested in purchasing an indemnity contract then you should know that the proof of income documents have to be submitted when you file a claim.
- If you are unsure which income cover you should purchase or if you need additional help regarding the taxation policies of income insurance plans then you should contact an insurance agent before purchasing any income cover. Income comparison websites usually offer some free advice to potential buyers who need assistance. Income comparison websites also offer a wide range of online services such as multiple quotes, comparison services and informative articles related to policies. These websites offer these services for no cost.