Engineers can face many challenges in their roles including injury leading to time off work. Income protection can help replace some of an engineers’ salary and help keep essentials such as mortgages and school fees paid.
Engineers are renowned for innovation, risk mitigation and rigorous problem-solving. But behind the technical mastery and high-stakes project timelines, engineers face a unique set of risks – both physical and psychological – that can impact their ability to earn a living.
In an era where your skills are your most valuable asset, James Marshall, Head of Affinity Partnerships at NobleOak, explains why protecting your income is not just prudent; it should be an important consideration.
What is income protection, and why does it matter?
Income protection, offered by NobleOak Life, is designed to keep the wheels turning when illness or injury means you can’t work.
“For example, if you’ve broken both your legs, suffered injuries or develop a mental health condition – you could be eligible to receive compensation,” Marshall said.
Day-to-day expenses don’t stop for health setbacks: mortgages, rent, car loans, school fees and grocery bills still require payment. Income protection can fill the gap, offering stability at a time when everything else feels uncertain – allowing claimants to maintain their lifestyle.
“Income protection insurance replaces a portion of your salary – up to 70 per cent,” Marshall said. “For example, if you’re earning $10,000 a month, you can receive $7,000 a month after your waiting period, up to your selected benefit period if your claim is accepted.”
Plans are flexible, capped at a maximum claim rate of $30,000 per month. “You don’t have to opt to receive 70 per cent of your income. You can choose the level of cover you want,” he said.
While claims don’t have to be work-related, income protection only applies to an injury, illness or condition that prevents you from working. “It does not apply to unemployment or redundancy-related conditions,” Marshall added.
Application, premiums and pre-existing conditions
Applying for income protection isn’t just a box-ticking exercise. Lifestyle, age, gender, occupation category, pre-existing health conditions and smoking status are all taken into account.
“When a customer takes a NobleOak policy, they’re assessed at an individual level,” Marshall said. Your premium will be based on the level of cover you select, in addition to all these factors.
Policies can be custom-fitted; people with risky hobbies might find those activities simply excluded from cover, not rejected altogether.
Flexibility for every stage
Custom-made benefit and waiting periods benefit and waiting periods allow policyholders to shape insurance to fit their risk and budget. You can opt to receive your claim payment between 30–90 days after the incident, with the premium rate lower depending on the length of the waiting period.
The same applies to the length of the benefit period where premiums are higher for longer periods.
“For example, if you opt to be paid a claim for up to one year, the income protection stops after that period, but your premium would be cheaper than if the claim was paid up to two or five years,” Marshall said.
Benefit periods also extend to 10 years, or up until the claimant reaches the age of 65.
“You may have sick pay or savings and only need a low claim period as a safeguard in case something happens and you can’t work,” he said. “So if you wanted a lower premium, as an example you may consider choosing 20 per cent of your salary, a 90-day waiting period and a one-year benefit period.”
Bundling with life and trauma insurance
A significant proportion of NobleOak customers opt to pair income protection with life insurance, ensuring financial continuity through illness, injury or death.
“Some people add trauma cover on as well, which is insurance that is payable upon diagnosis of a defined serious illness, such as cancer or a stroke,” Marshall said.
At NobleOak, Engineers Australia members receive a 12 per cent discount on life insurance and a 10 per cent discount on income protection insurance.*
Choosing your policy with rigour and clarity
Engineers – accustomed to detailed analysis and methodical decisions – should approach insurance with the same rigour they bring to their projects: weigh the options, know the exclusions, and select a level of protection that supports both their career and lifestyle, whatever the future holds.
A few essential tips to follow before selecting a policy:
- Quantify your cash-flow needs: List your fixed costs (for example mortgage, utilities, school fees and loans) and determine the minimum monthly income you may require for continuity.
- Compare configurations: Test cover levels, waiting periods and benefit durations using NobleOak’s online quote tool or speak to one of their representatives who can provide general advice.
- Consider bundling: In addition to income protection over, you may consider evaluating life and trauma cover options to secure a unified protection portfolio.
At each policy renewal, consider salary changes, family events or career milestones to decide if you need to increase or decrease your cover.
“We will do all we can to assess your claim promptly and if accepted, commence payments. We’ll help you with rehabilitation services if required ,” Marshall said. “The idea is to work with you to help you get better.”
Any financial product advice is general in nature only and does not take into account your individual circumstances, objectives, financial situation, or needs. Before acting on it, please consider the appropriateness of the information, having regard to those factors. Persons deciding whether to acquire or continue to hold life insurance issued by NobleOak Life Limited should consider the relevant Product Disclosure Statement and Target Market Determination for the product. NobleOak Life Limited ABN 85 087 648 708 AFSL 247302.
*Lifetime discount – Engineers Australia members are entitled to a 12 per cent lifetime discount on NobleOak’s standard Premium Life Direct premium rates for its term life cover (12 per cent discount applies to term life cover only). Engineers Australia members are entitled to a 10 per cent discount (which remains for the life of the cover) on NobleOak’s usual premium rates for its Income Protection cover with Premium Life Direct. Income Protection Insurance premiums are generally tax deductible.
