Teachers, lecturers, tutors and support staff help others prepare for the future, but an extended period of illness or injury can threaten their own finances. Income protection insurance can provide a monthly benefit if a covered sickness or injury prevents you from working. For education workers, the value in purchasing a policy depends on the following:
- Leave conditions
- Savings
- Employment arrangements
- Policy terms
How Does Income Protection Insurance Work?
Income protection insurance replaces part of your earnings for an eligible period after a stated waiting period. Benefits are paid monthly in arrears, typically covering up to 70% of income, and subject to the following:
- Terms and conditions
- Evidence of pre-claim earnings
Key choices include:
- A waiting period (4, 8, or 13 weeks)
- A benefit period (1, 2, or 5 years, or up to age 65)
What Should Education Workers Check?
Eligibility and terms depend on the following:
- Your precise education role and everyday duties
- Employment status:
- Permanent
- Casual
- Sessional
- Contracted
- Self-employed
- Medical history and lifestyle choices
- Income and working hours
Applicants are often required to work 20 to 30 paid hours per week (depending on the occupation). As claims require proof of pre-claim earnings, educators with fluctuating income should check how their earnings are assessed and gather appropriate documentation.
Income Protection Insurance: Exclusions
Education professionals should not assume that being unable to teach, lecture or support students will automatically result in a successful claim. Policies generally cover an inability to work caused by a qualifying illness or injury, rather than any and every event that interrupts.
Common exclusions may include claims connected with the following:
- Intentional self-harm
- Normal and uncomplicated pregnancy or childbirth
- War
- Criminal activity
- Professional deregistration and disqualification
The final point is especially relevant for registered teachers and other regulated education professionals. Income protection insurance is not designed to replace employment, disciplinary, or professional indemnity cover, so always check the relevant Product Disclosure Statement.
Do People Working in Education Need Income Protection Insurance?
Not automatically, but consider whether an inability to work would create a serious shortfall. Review these factors:
- Employment pattern and sick leave
Permanent school or university employees may have paid leave, while other workers may have less protection. This is especially relevant to:
- Casual or sessional educators
- Private tutors
- Contract teachers and self-employed trainers
- Living costs and dependants
Mortgage or rent, household bills and support for dependants continue during an extended absence.
- Savings and waiting period
Compare your emergency fund and paid leave with the waiting period. Benefits will not begin immediately, so you must be able to cover the gap.
- Duties and claim definition
Education work may involve a broad range of skills and expectations. Check how the policy defines your occupation and treats partial capacity to work.
- Existing support
Review the following carefully:
- Employer benefits
- Insurance through existing policies or financial structures
- Workers’ compensation (work-related injury or illness)
- Government support
Income Protection Insurance: Conclusion
There is no universal answer. Ask yourself whether your leave, savings and existing benefits could sustain you if sickness or injury stopped or reduced your ability to work.
Before purchasing cover, compare premiums, waiting and benefit periods, claim definitions and exclusions. Read the fine print and consider financial advice for your exact circumstances.
