Life Insurance and Income Protection
Can I get Life Insurance or Income Protection Insurance while I am on a Visa?
There are a number of insurance companies in Australia that are happy to provide cover to individuals who are residing in Australia on a 457 visa. Generally the insurer will require that you have definite intentions of remaining in Australia and becoming a permanent resident when you are eligible.
As well as this, insurance companies might seek to place an exclusion on your life insurance or income protection policy relating to how long you can be out of Australia before your policy is cancelled. Should you fall ill or sustain an injury whilst being overseas, the insurance company might insist that you return home for medical advice before paying your claim. There may also be some limitations on Income Protection Insurance for 457 visa holders.
As you can see, there are many things to keep an eye out for when looking at Income Protection or Life Insurance whilst residing in Australia on a visa. Speaking to a financial adviser will enable you to understand exactly what your policy will and won’t cover.
Will my employer provide me with insurance?
Typically, employers provide a basic level of insurance known as WorkCover, this type of insurance is very limited in what it will cover you for as it is a requirement that you be unable to work due to an injury sustained at work. Your employer is not obligated to continue paying your income if you are unable to continue to work. Due to the vast majority of income protection claims being a result of non-work related injuries and illnesses, a more comprehensive type of insurance is generally desirable. Your employer can choose to cover the costs of income protection, but again they are not obligated to.
What happens to my Life Insurance or Income Protection Insurance if I become a Permanent Resident? If you have been granted permanent residency and wish to keep your Life Insurance and/or Income Protection Insurance, you should speak with your financial adviser regarding the level of disclosure that is required from you. With regards to your Income Protection Insurance, if you are granted permanent residency, your insurer may be more inclined to offer you greater benefits as your stay in Australia is more secure. These benefits can include the shortening of your waiting period, the lengthening of your benefit period and converting your cover from an Indemnity contract to an Agreed Value contact. This can provide a greater certainty in respect to the benefit being paid in the event of a claim. Once again, it is advisable to seek advice from a financial adviser so that you are fully aware of what your obligations are.
What is the 457 Visa?
The 457 Visa is a visa that allows employers to sponsor skilled workers from overseas to work in Australia on a temporary basis; generally for a maximum period of four years. This visa also allows you to bring family members into Australia granted that they are eligible and have unrestricted work and study rights in Australia. Furthermore, applicants must meet the minimum health and English speaking requirements as well as the necessary skills and experience required for their position.
Can I travel back overseas while on a 457 Visa?
Yes, the 457 Visa allows you to travel in and out of Australia as many times as you want. However, it is also a requirement and restriction that you must not cease employment with your sponsor for more than 60 consecutive days.
General Advice Disclaimer
General advice warning: The advice provided is general advice only and in preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product.
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