Labourers and tradespeople are the least likely to have income protection insurance despite their greater chance of getting hurt at work, News Corp Australia has reported.
Just 43 per cent of them protect themselves with personal insurance, according to a study by life insurer NobleOak. “It’s surprising that life insurance or income protection insurance isn’t part of a tradie’s toolkit, especially when they are working with power tools and up ladders on a daily basis,” NobleOak CEO, Anthony Brown said.
Life insurance is an umbrella term encompassing income protection insurance, term life insurance which is paid on death, total and permanent disability insurance, and critical illness insurance.
“A lot of them are younger and may think they are bulletproof as well,” Brown said.
While death cover premiums don’t change depending on the insured’s occupation, income protection is priced according to the potential dangers of your job, and can be between 20 and 200 per cent more expensive for a tradesperson or labourer than for a professional.
“Their income protection premiums are higher because they claim more often,” Brown explained.