“Definitely not! Although the general aim of both types of policy is generally the same – to protect your income – the policies are actually quite different.

We could fill a number of pages on the technical differences between the two, but the bottom line is that an accident and illness policy is generally far more difficult to claim on when compared to a proper income protection policy.

Another important difference is around the term “guaranteed renewable”, also known as “non-cancellable”. With an accident and illness policy, the insurer can cancel your policy at any time if they think you’ve become too much of a risk. They can also exclude certain conditions as they wish.

For example, say you required a knee reconstruction whilst your accident and illness policy was in-force, the insurer would have to pay you for any time away from work, but at your next renewal they could add an exclusion to your policy stating they will not pay any further claims relating to your knee.

If you suffered a minor heart attack or stroke during the policy period, or decided to take up skydiving or some other dangerous pursuit, they may chose not to insure you at all when your next renewal is due. In this case, you may have great difficulty finding another insurer to offer any level of cover to you.

With income protection things are very different. Once your policy is in place, and provided there has been no fraud or dishonesty involved, the insurer MUST offer you a renewal each year and they cannot cancel your policy as long as you keen paying the premium.

If you suffer a dozen different claims relating to your back for example, the insurer will have to pay you each and every time. Furthermore, they cannot increase your premium regardless of the number of claims you make! Income protection and accident and illness can be very different beasts, so please don’t let your insurance broker try to fool you by selling you a “cheap” policy, as it may cost you a LOT more down the track.

Tradies Love Trade Risk

In 2017 Trade Risk was awarded a Gold Trusted Service Award for the amazing service we offer to thousands of tradies from around Australia.

  • "Getting u the best prices and always there to help"
    Conworx Pty Ltd | Tradesman Insurance |
  • "Right product value for money."
    | Tradesman Insurance |
  • "I had to chase up the certificate of currency."
    | Tradesman Insurance |
  • "From the get go, staff was very helpful in guiding me in the right direction in construction formwork insurance Thanks again! GIO no longer helpful lol"
    | Tradesman Insurance |
  • "Great service great price 👍🕺🏾"
    AJC Building & Constructions Pty Ltd | Tradesman Insurance |
  • "Really wanted cheapest insurance possible and this was the best I could find."
    Jason Hagan | Tradesman Insurance |
  • "Hi. My name is Gai and I have been doing all the paperwork for Mick's insurances. I am very impressed with the service of Paul, Jennifer and all the other girls who answer the phone. You are greeted nicely on the phone and placed through the person you ask for straight away. If they are busy, they will phone back rather quickly. The quotes I required were emailed to me promptly. Of course I had a lot of questions that I didn't understand, so I have rung both Paul and Jennifer at different times to explain things and they have both explained things so easily for me to understand. I cannot fault their service at all. They are very approachable and I feel very at ease knowing that they are handling the (3) insurances that I have in place for my husband Mick. Kind Regards, Gai Grcar"
    Michael Grcar | Tradesman Insurance | Albion Park Rail, NSW
  • "very good service"
    Karl Horst Gessinger Thermalx | Tradesman Insurance |
  • "Easy and straightforward process. Thank you"
    | Tradesman Insurance |
  • "Great"
    John William Day JD Electrical Services QLD | Tradesman Insurance |
  • "Very good rates and quick service. Trade Risk is no Risk."
    Peter Clive Elias T/As ConnectTek | Tradesman Insurance |
  • "Very good service"
    Donald McNally | Tradesman Insurance | Perth wa
  • "31 Sheffield Rd, Welshpool WA 6106"
    Darren James Hatton | Tradesman Insurance |
  • "Easy to talk to and the cover I required"
    KJ Metfab Pty Ltd | Tradesman Insurance |
  • "simple and not time consuming"
    Frank & Davina Rudd | Tradesman Insurance |
  • "Price and service."
    | Tradesman Insurance |
  • "Easy to deal with once again"
    Lachlan Edward Ellicott | Tradesman Insurance |
  • "No and yes"
    | Tradesman Insurance |