Income Protection Insurance in Australia for Kiwis
Income Protection is one of the most important types of insurance that New Zealanders working in Australia need to consider purchasing. It comes under the broad heading of a form of life insurance but as it is very important for New Zealanders to consider we have given it its own separate section.
Income Protection is designed to cover you temporarily if you are unable to work due to injury or illness, so that you’re able to maintain your day-to-day living expenses during your recovery period. Generally speaking, Income Protection will cover you for up to 75 percent of your normal income, until such time as you’re able to return to work – or at the end of the set period noted in your policy. While there are some policies that offer a higher percentage of cover, you should check the product disclosure document (PDS) of any insurance policy you are considering before making a decision.
Income Protection is important to New Zealanders working in Australia because most New Zealanders are not eligible to claim any unemployment benefits in Australia. That means if you were to become unemployed you would have no income to cover your living expenses like rent, mortgage and living costs like groceries and petrol. Income Protection, which does not cover you if you voluntarily resign from your job, will help you maintain your current lifestyle until you are able to find another job and it should therefore be seriously considered by all New Zealanders working in Australia