Workers compensation and income protection both replace lost income when you can't work, but they cover very different situations. Workers compensation — commonly known as WorkCover — is a statutory scheme funded by your employer that only applies to injuries or illnesses directly caused by your work environment. It's not something you choose or pay for yourself.
Income protection is a private policy you take out independently, covering you for any illness or injury regardless of whether it happened at work, at home, or elsewhere. Workers compensation is also capped at a maximum weekly rate and limited in duration, while income protection can pay benefits for years or even until age 65 depending on your policy.
For anyone whose income exceeds the workers compensation ceiling, holding income protection alongside it provides significantly more complete financial protection. Finsol compares Australia's leading income protection policies to find the right fit for your income and occupation.
