Hi
im totally new to insurance any type.
How does it work with contracts job? like 2 years of contract? or even full-time ?
for example if I have a contract of 2 years and I insurace this income, after my contract will be paid by insurance same amount of salary for 2 years or 1?
thanks
I do have a full-time job as an engineer.
We've been told that the company will shave off about 80% of it employees after the project completion, so i want a protection?!
Income protection helps replace lost income if you are unable to work due to sickness or injury. You can't receive income from insurance if your contract is finished, you are basically unemployed if your contract is finished.
Mortgage protection insurance might help you for a period if you become involuntarily unemployed. Income protection insurance will only really help you if you can't work.
thanks !
Some have redundancy protection. For extra. For a ahort period for a long wait period of course
You need to read up on how much the inaurance policy pays in event of redundancy too.
They typically pay out a very limited amount such as minimum monthyl credit card repayment and or minimum home loan repayment and or a lowish income amount. They usually pay out for a limited time usually 3 months only.
you wont get protection for contract work. once the contract is over thats it, you arent redundant, the contract has ended. thats the difference.
check your super as most have income protection built in (mine does)
contractots get paid double the money for this reason
Not taking the year off now?
are u stalking me or something?
Not really. You post simple questions on the forum almost every week and with a username such as yours, its not hard to recognise.
Stalking would require more than 2 clicks.
im in a relationship dude
lol I'm not a dude and so am I. He/She must have a lot of patience. He/she's a keeper.
playing hard?
Income protection only pays when you are sick or injured and unable to work.
Some income protection policies do offer redundancy cover as a bonus, but usually only to cover the minimum repayments of your home loan and even then subject to maximums (usually around $2,000 - $3,000 per month).
They also usually offer redundancy pay for up to 3 months and then you're on your own.
Normally, I recommend my clients start saving sensibly (definitely avoiding splurges on ozbargain too frequently!) to give themselves a buffer of 3 months of living expenses.
thanks for the info
You're confusing possible unemployment with income protection.