Income Protection for Casual Workers
Review 10+ income protection policies that cover part-time employees and casual workers.
Key takeaways
- Casual and part-time employees can still get income protection, but there are more restrictions around it.
- Most funds need you to be working a minimum of 20 hours to be eligible.
- You will also need proof of a year or more of steady income.
Conditions of casual or part time income protection
Income protection companies are generally building their products for people who work a traditional full time gig. Which is fine, except there are more people than ever working casual and part time gigs, thanks to capitalism mostly. Especially for young peoplel.
So, if you want income protection as a casual or part time worker, you're going to need to jump some extra hurdles. Here are 3 common rules:
Minimum hours worked in a week
Most policies will require you to work 20 hours a week to qualify for cover.
Minimum weeks worked in a year
Some policies will require you to wotk a minimum of 48 hours per year.
Age restrictions
Some policies will enforce a stricter age limit e.g. 18-59.
Income protection for less than 20 hours per week
You'll notice on the table below that most insurance companies won't cover workers with less than 20 hours a week regularly employment. Despite that, there are some other options available from select insurers. If you work less than 20 hours per week, you may be able to get cover under "homemaker" income protection policies, but should make sure that working on a casual basis does not disqualify you from "homemaker" status with a certain policy.
The exact ways that each company change over time, so you may need to speak to a broker if you don't neatly fit into the box the companies have built. BEcause of course you don't!
Who covers part-time or casual employment?
| Provider | Required employment status | Minimum hours* | Apply |
|---|---|---|---|
| Permanent part time | 20 hours | |
| Permanent and part time | 20 hours | |
| Permanent and part time | 20 hours | |
| Permanent and part time | 20 hours | |
 | Permanent and part time | 20 hours | |
| Permanent and part time or technically casual | 20 hours | |
 | Permanent part time | 20-25 hours | |
 | Permanent and part time | 20 hours | |
 | Permanent and part time | 20 hours | |
 | Permanent and part time | Not Stated | |
 | Permanent and part time | 20 hours |
*Can vary depending on the type of occupation. Always consult the Product disclosure statement (PDS) if you are unsure.
Part-time and casual income protection for different occupations
Depending on your job, your income protection insurance will have different benefits and requirements. Insurance providers categorise occupations based on risk level and it's important to know which category your job falls into. Some occupations such as farming are also susceptible to unpredictable income fluctuations, and you should ensure that you have good income protection insurance to help cover these unexpected shortfalls. Learn more about income protection insurance to make sure you have the best cover for your job.
Can I get income protection as a stay-at-home-parent?
Stay-at-home parents or 'homemakers' can also claim income protection. A growing number of insurers in Australia are recognising homemakers as eligible recipients for income protection benefit payments. Insurers recognise the financial strain of losing a homemaker as it often results in needing to pay for the services of a professional worker to carry out day-to-day tasks. For single parents, injury or illness can mean that they can’t care for their children.
Tips for finding the right income protection policy
Look at the cost of the plan and make sure you can afford the premiums.
Check to see which providers offer cover for part-time workers and how many hours you need to be working to get it.
Compare the maximum coverage levels available with different providers to find a plan that offers you a good level of security. You may have a preference for a lump sum payment, or for ongoing payments.
Compare the benefit periods and the waiting times available with different providers to find one that works for your savings and income.
Consider cover from a range of different providers. Rule out the insurance companies that don't have plans you're eligible for.
If you're having trouble finding the best option, use the Income Protection Insurance Finder to compare a wide range of options and find the best cover for your situation.
Compare income protection quotes from these direct brands
Tip: If you want to compare policies side-by-side, simply click the 'Compare' tickbox. Then select 'Get a quote' to get started.
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