Don’t get yourself in hot water

A Personal Accident and Illness policy may provide peace of mind in the event of workplace injuries or illness. Such policies could minimise the financial burden caused by a long-term absence from work. Should an incident occur, your income may be protected with a specified weekly benefit, generally equating to 75% of your normal income. Depending on your chosen policy, you also have the option of either a 52 or 104 week benefit period to provide enough coverage in the event that workplace accidents or illnesses result in long term absenteeism from the job site. Like any policy, waiting periods and exclusions may apply. It is advised that you read the PDS and discuss your individual needs with our brokers prior to taking out cover. While some individuals may think they can rely on their superannuation to help ease the financial pressure if they unexpectedly become victim to a workplace injury or illness, it is important to be aware that this is only the case under the provision that such protection is incorporated within their superannuation. If such assistance is attainable through one’s superannuation, it is mandatory to meet one of the strict conditions of release as per the Superannuation Industry (Supervision) Act 1993 in order to qualify for payment. Comparing Expert also suggests that if these conditions are met, there is a possibility that you may be underinsured, meaning that you may not be sufficiently covered during your time off work⁴.

Even more pertinent, as the financial year draws to an end, you may not be aware that you can generally claim the cost of the premiums that you pay for a Personal Accident and Illness Insurance policy against the loss of your income, as advised by the Australian Taxation Office⁵. In saying this, a deduction cannot be claimed for a policy that provides compensation for a physical injury or if the policy is taken out through superannuation. You should check with your tax agent to confirm.

In the blink of an eye, your whole world could dramatically change. However, you could be covered for Personal Accident and Illness by Masters Plumbers Insurance Brokers. For more information or a quotation, please contact us on 1300 300 511.

1 https://www.safeworkaustralia.gov.au/book/ work-related-injury-fatalities-key-whsstatistics- australia-2018
2 https://www.sbs.com.au/news/one-mathslecturer- on-whether-you-should-enterpowerball
3 https://www.safeworkaustralia.gov.au and search workers compensation statistics 2015-16
4 https://www.comparingexpert.com.au/ income-protection/through-super/
5 https://www.ato.gov.au/individuals/incomeand- deductions/deductions-you-can-claim/ other-deductions/income-protectioninsurance/

Notice: Master Plumbers Insurance Brokers (Aust) (MPIB) is a trading name of Marsh Advantage Insurance Pty Ltd (ABN 31 081 358 303, AFSL 238 369). MPIB arranges the insurance and is not the insurer. This article contains general information, does not take into account your individual objectives, financial situation or needs and may not suit your personal circumstances. Any statements concerning actuarial, tax, accounting, or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, accounting, tax, or legal advice, for which you should consult your own professional advisors. For full details of the terms, conditions and limitations of the covers and before making any decision about whether to acquire the product, refer to the specific policy wordings and/or Product Disclosure Statements available from Marsh Advantage on request. The Master Plumbers and Mechanical Services Association of Australia (MPMSAA) receives a financial benefit when a policy is arranged by Marsh Advantage, enabling it to continue to provide further services to the plumbing industry. LCPA: 18/0074