What is income protection insurance?

If you're working and you are an income earner for your family, having some protection or insurance for the money that you bring in is a good idea. Income Protection is an insurance policy paying benefits to policyholders who are incapacitated and hence unable to work due to accident.

Why do I need income protection insurance?

Income protection insurance can help you protect one of your most valuable assets: your future salary, so that you can continue to pay your monthly obligations.

What am I covered for?

Your cover can pay a proportion of your salary if you’re temporarily unable to work because of injury. The proportion is determined in the terms and conditions of your policy. Income Protection Benefit is payable for a maximum of 12 months and only payable after 30 days, provide you are permanently employed and under 65 years of age.

What is my duty of disclosure?

Some policies require you to disclose any pre-existing health problems you may have. If you don't, the insurer might not pay you out.

What does ‘Incapacity’ mean?

An Accident certified by a Physician which totally prevents you from doing any part of your normal occupation, or any similar work for which you are reasonably qualified. You must also not be doing any other job for payment or reward.

When can I claim?

It is advised to make a claim as soon as possible, but you can claim before 90 days from the date of the accident.

What papers should I lodge with the claim?

A claim form, medical reports that support the claim, relevant documents from medical and other authorities, relevant tax records and written submissions. It is really important to get your claim submission underway.

What if I go back to work?

The benefit will stop being paid.

Are there any exclusions that apply to Income Protection Cover?

Some Insurance companies will not pay an Income Benefit in respect of a claim for a Disabling Injury occurring directly or indirectly from:

• A Mental Disorder or Illness; or
• An intentional self inflicted act; or
• Attempted suicide; or
• The consumption of drugs (unless under the direction of a Medical Practitioner and not in connection with treatment for drug addiction, substance abuse or dependence); or
• The consumption of intoxicating liquor, including having a blood alcohol content over the prescribed legal limit whilst driving; or
• Normal pregnancy (including participation in IVF or similar program, normal discomforts such as morning sickness, backache, varicose veins, ankle swelling or bladder problems), giving birth, miscarrying or having a pregnancy terminated; or
• War (whether declared or not) or war-like activity, or taking part in a riot or civil commotion; or
• Engaging in any criminal activities or illegal acts.
• The insurance company will not pay the Income Benefit where they have agreed a special term with you in respect of your cover that specifically excludes the event or condition leading to the claim. Any such special term will be agreed with you before your Policy is issued and will appear on your Policy Schedule.

Can I change my level of cover when I need to?

Yes, you may contact your insurance broker/company and apply at any time to increase or decrease your insurance. Any change is subject to approval.

Can I cover my partner too?

It is possible to cover your working partner on your policy; however your working partner also can apply for a separate Income Protection Cover policy.

The following occupations are excluded:

• Service or duty with or undergoing training with any military or police force, or militia or paramilitary organisation;
• Professional Sports
• Engaging in underground activities, including mining and prospecting activities, occupational or other activities requiring the use of explosives;

Do I have to pay my premiums while I am unable to work?

Yes.

Do I have to provide proof of my income to get cover?

No financial evidence is required during the application stage. If you make a claim, the insurance company requires you to provide satisfactory financial evidence of your Pre-Disability Income.

Do I need to take a medical test to get cover?

No external medical evidence, such as medical tests or blood tests, is required when applying for Income Protection Cover. You can apply over the phone by answering a few simple health and lifestyle questions.

How are premiums payable?

Your premium will be debited on the day of your choice monthly. The date you accept the cover will become your Policy Commencement Date.

How can I use the money I receive if I have to make a claim?

You can use the money you receive as you wish – to cover daily living expenses, pay the rent or bond, credit card and car repayments, pay medical and rehabilitation expenses.

How does the benefit work?

Income Benefit will be paid to you on a monthly basis if you suffer a Disabling Injury that leads to a loss of income while covered under the policy.

I am a smoker, can I still be covered?

Yes, as a smoker you can still apply for Income Protection Cover.

If I cancel the policy do I get anything back?

If you cancel the policy within the “cooling-off period” (within 30 days from the Policy Commencement Date) you should be refunded any premiums you may have paid in this period, provided you have not made a claim under the policy.

I have life insurance; do I need income protection insurance?

Income Protection Insurance and Life Insurance can work together to provide financial security for you and your family.

Income Protection Insurance is designed to help replace your Income if you are unable to work for an extended period due to a Injury.

Life Insurance pays a benefit in the event of your death and is designed to help you provide financial security for your family if the worst were to happen.

I play a competitive sport, does this affect my application for Income Protection Insurance?

Certain hazardous activities (including some sports) could affect your application for Income Protection Insurance. During your application you will be asked questions about your participation in any hazardous activities and the consultant will inform you if this affects your application in any way.

Is this cover available to the self-employed?

Yes, provided you have been self employed for at least 12 months prior to the Policy Commencement Date.

I work part time; can I still take out cover?

Yes, as long as you are working a certain amount of hours per week and you have been working in this capacity for at least 12 months prior to the Policy Commencement Date, you can apply for Income Protection Cover.

What happens if I return to work and need more time to recover?

If your recurs within six months of your last Income Benefit payment you can resume receiving your monthly Income Benefit without undergoing a new Waiting Period. Your claim is only payable for the balance, if any, of the Benefit Period.

If the Injury is due to an unrelated cause, then a new Waiting Period will apply. This means that you could claim for a Injury unrelated to a previous claim, but the Waiting Period and Benefit Period will apply in this circumstance.

Will my premiums go up?

Although we do not expect to increase premiums, certain circumstance may result in future contributions not being sufficient to maintain full Benefits throughout the lifetime of the Policy. We will  from time to time review the level of contributions in relation to the Benefits provided by Your Policy and will advise You of any changes that may be necessary by sending You written notice to Your last known address 30 days before the change takes effect.