Income protection and WorkCover are different products. While many people assume that they are more or less the same thing, there are many notable and important differences between both. This blog will explain what each product is, explain if you need both products and discuss the claiming differences and process for the products. 

What is WorkCover? 

Workers compensation is compulsory for most businesses in Australia. Business owners are required by law to have it as part of their business in order to protect their employees. WorkCover provides financial compensation to employees if they become sick or injured as a result of their work. The maximum monthly benefit for workers with WorkCover is $7,996 and this comes at no cost to the employee. It should be noted that this is not an available cover if you are self-employed. 

What is Personal Income Insurance? 

Income Protection Insurance is a far more comprehensive type of insurance. You don’t need to prove where your injury or illness occurred like workers compensation; you just need to prove that you’re unable to work. Income protection insurance ensures that you are covered for injuries suffers both at work and outside the workplace. It is important to note here that accidents can occur anywhere, and you should be protected against a random injury or illness. The maximum monthly benefit is $60,000. All premiums for this insurance are tax-deductible. 

Do You Need Income Protection or Can You Just Rely on WorkCover? 

WorkCover will provide assistance to you provided that you are injured at work. It will not cover you for any injuries sustained outside the workplace. WorkCover also will not cover you for any injuries that you have sustained because of your own mistake or negligence. Plus, weekly payments through WorkCover can be limited and may expire. It is also important to note that death cover through WorkCover is also limited. Personal Income Protection can provide assistance on a wider range of injuries, including those sustained outside of work. They also can provide higher monthly payments, and require less proof to achieve a payout. 

Can You Claim WorkCover and Income Protection Simultaneously? 

Yes, you technically can claim both WorkCover and income Protection simultaneously. However, if you choose to do this, then it is likely that your insurance company will offset your WorkCover payments so that you are not achieving over 100% of your pre-injury salary. If your insurance payout is reduced because of the additional WorkCover payments, then you will have some of your insurance premiums refunded.