Income Protection Insurance

Your ability to earn an income is valuable and should be protected. With income protection cover you can insure up to 70% of your regular income in the event that you are unable to work because of sickness or injury. In some cases income protection can insure a certain percentage of superannuation contributions.

When to apply

Number of questions to consider when applying for cover

  1. How quickly do you need the benefit payment?
  2. How long do you want the payment to last for?
  3. Is the benefit to extinguish debt, finance recovery or to help modify your lifestyle?
  4. Do you have a current life, total and permanent disablement or trauma policy?
  5. Would you be able to return to work in a full capacity?
  6. Do you have any dependents to provide for?
  7. What is the loss of salary for each month you are off work?
  8. Would you lose employer superannuation?
  9. How much sick leave or annual leave do you have available with your employer?
  10. Would your home/car require modification to ease your disability?

Income protection cover can allow you to select a waiting period which is the time that you need to be disabled before the insurer starts to pay you the benefit. Depending on the policy, this waiting period could vary from 14 days to two years.

Benefit periods are also applicable with income protection policies.  A benefit period establishes how long the insurer will pay you benefits if you make a successful claim. Depending on the policy, benefit payment periods can vary from two years up to and including age 65.

The premium is generally tax deductible; however, your tax adviser would be able to confirm this.

Similar to income protection insurance but accidental income protection insurance will only pay a monthly benefit if your disability (total or partial) is the result of an accident.