Income Protection cover insures a portion of your salary if you are unable to work for an extended period of time due to illness or injury, and you are either Totally disabled or Partially disabled.
You have a choice of waiting periods of 30, 60 or 90 days that must elapse during which you are Totally or Partially disabled before any benefit is paid.
There is also a choice of benefit period – that is, the period over which your payments will be made – which are 5 years or to age 65. Different premium rates apply for each option. See the Insurance Guide for more information.
While your insurance application is being assessed, Accident cover is provided for whichever type of cover you are applying for up to a maximum level of $15,000 per month and for the lesser of the agreed benefit period or a maximum of 24 months.
This means that if you have submitted your application for insurance, but it hasn’t been approved yet and you are involved in an accident resulting in you becoming Totally or Partially disabled an Income Protection benefit is payable to you.
What happens if my circumstances change?
If you hold Income Protection cover, you are protected if an event occurs in the following circumstances:
Working overseas – if you are temporarily working overseas and are an Australian resident or you hold a visa, you are covered while working overseas for a period of up to three years.
If you change jobs – cover will continue if you cease working, change jobs or move to a different employer, subject to the ‘When does cover end?’ conditions detailed in the Insurance Guide.
If you have a recurring disability – and have returned to work and the same disability returns within six months of the earlier claim ending, the Insurer will consider the further claim to be a continuation of the earlier one.