Juggling multiple jobs and wondering about income protection?

If you're knocked off your feet by sickness or an injury, income protection's designed to replace a portion of your income. But what if you've got a few paychecks coming in and if you have two or more sources of income? Let’s dive in! 

How does income protection work? 

Typically, income protection in Australia covers up to 70% of your income. Got a couple of jobs on the go when you sign up for a policy? Insurers usually have a look at your total income from all gigs to figure out your cover amount. And if your cash flow's a bit all over the shop, they might just take a cheeky average of your income over time to pinpoint your usual monthly earnings. 

With income protection, you can get ongoing cash benefits. You'll receive them until one of these happens:  

• You're back on your feet and can clock into work again. 

• Your benefit period stops. 

• You hit that age where renewing your policy is a no-go. 

The premiums you’re chucking towards income protection might just be tax-deductible. That means you might be able to claim the cost back as a deduction when tax time rolls around. But keep in mind, if the policy ends up tossing you some benefits because you’ve claimed, that is usually counted as part of your taxable income. 

A few handy tips about your income protection 

• First off, there's this thing called the Waiting Period. It's that bit of time you gotta wait before the benefit payments start rolling in. When you apply, you get to pick your Waiting Period—could be anywhere from 14 days to 90 days (or even longer) after you first can't work. And here’s a tip—going for a longer wait usually means lower premiums than if you wanted the benefits ASAP. 

• Next up, the Benefit Period. That’s how long you’ll get those payments if you put in a claim. Your choices might range from a quick 2-year deal, all the way up to when you hit 65, depending on your policy. Shorter Benefit Period? Typically equals lower premiums compared to sticking it out for the long haul.  

But what happens if you find yourself on the bench for more than just a couple of years, hey? This is where having a longer benefit period, stretching all the way to 65, could be a real lifesaver. You know, research shows that only about 35% of Aussies could keep up with their bills for more than three months if they were to lose their job outta nowhere tomorrow. So, give it a good think and lock in a policy with a benefit period that’s a good shout for you and your family. 

Read more about income protection to age 65 in this blog. 

• Some policies might throw a few extra benefits your way if you’re partially disabled. So if you can only get back to one of your gigs or return to work but not quite at full throttle, you might still snag a reduced benefit amount. 

• And don’t forget—riskier jobs usually mean steeper premiums. If you’re balancing two jobs that sit in different risk categories, insurers will likely base the premium on the one that's a bit more on the wild side. 

If the juggle of multiple jobs and income protection is making your head spin, having a chat to a financial adviser might be a smart move. They’ll help you navigate through the policy particulars related to your jobs, ensuring you’ve got just the right amount of cover. That way, you’ll be in a beaut spot to keep those bills in check, no matter what life throws your way.