Income protection pays a monthly benefit while you are unable to produce an income due to illness or injury. Income Protection can cover up to 75% of your income if you are totally or partially disabled.
It is designed to provide an income stream allowing you the financial freedom to focus on your recovery or treatment.
What does it do?
Income Protection is designed to do just what it says. Protect your income in the event of you being unable to work due to sickness and or injury.
What is the Benefit?
The income protection benefit is worked out as a percentage of your pre-disability income. The benefit will be paid to you on a monthly basis following the completion of the waiting period, and will continue normally until you either return to full time work, or the benefit period of the policy has been reached. A partial payment can also be made in the event you were to return to work part time.
How much Income Protection can I get?
Normally the benefit will be 75% of your taxable personal exertion income. This means income from investments or real estate rentals will not be covered.
How does the policy work?
Income protection while being fairly simple in its operation is complex when it comes to the policy structure. For example, waiting periods can range from 14 days through to 2 years and benefit periods are normally either 2 or 5 years, or to age 60 or 65. Some policies allow for split waiting periods and with certain policies benefits may be considered to age 70. There are many optional benefits available to speed up benefit payment times, or to help with rehabilitation. Your adviser will discuss these benefits with you and work out a policy that suits you.
Where to from here?
Following discussions with your adviser, they will make written commendations outlining the policies and sum insured, waiting periods and benefit periods that will meet your current circumstances. A personal medical statement is normally all that is required to have the application process started, however, sometimes depending on your medical history, blood tests or a medical appointment may be required. From there, your adviser will liaise with you through to the insurer issuing your policy documents.
What happens if a claim is made?
In the event a claim is made, your adviser will try and make the process as simple as possible for you. Claim forms will need to be completed, identification documents, medical records and doctor’s report together with income verification will need to be obtained and your adviser will help with this and liaise with the insurer. The insurer has a dedicated claims team, and a claims assessor will be allocated to help you through this process