Financial advice for FIFO workers
Are you a fly in fly-out (FIFO) worker in WA? Traditionally, getting adequate personal insurance has been difficult, once you explain that you work on the mines or in the oil & gas industry. Thankfully, many insurers are now updating their occupational ratings to allow greater cover for more workers.It makes sense for FIFO workers in Western Australia to have a contingency plan for sickness or injury. So how well are you protected against the financial consequences of death, sickness and injury? When you have an income, debts, and a family to protect, income protection and life insurance are vital back-up plans for any miner. And it pays to get specialist advice from someone that understands the unique demands of your industry. Be aware that if you seek advice direct from your Bank or Super fund, they will only be able to advise you on one product – their own.Income protection cover pays up to 80% of your income if you can’t work because of sickness or injury. This money is essential in helping to meet your ongoing living needs including meeting your mortgage repayments, when you are ill.
How much does insurance cost?
A 30 year-old excavator operator can take out $500,000 Life Insurance plus Income Protection of $8,000 a month for less than $5 a day. This example is based on a male, non-smoker, Standard Income Protection, 90 days waiting period, and 6 year benefit.There are also a number of tax concessions associated with life insurance. For starters, you may be able to hold your life and TPD insurance cover inside super. This means you can use your pre-tax salary to pay your premiums. Another benefit specific to income protection and business expense insurance is that the premiums are generally tax-deductible.