Income Protection

Income protection insurance pays you a benefit if you are unable to work for a certain period of time because of illness or injury. This is generally paid monthly but can be paid as a lump sum in certain circumstances.

The insurance company will insure you for a set percentage of your current regular income (commonly up to 75% of your gross salary including super) for up to a certain duration known as the benefit period. In the event of a successful claim, you may need to wait for your income protection insurance to “kick in” after a certain waiting period specified in the policy, for example, 30 days or 90 days. After the waiting period, the policy should pay you the insured monthly amount until you are able to return to work, or for the agreed period of time (which is generally a certain number of years or until you reach a certain age) – whichever is sooner.