Income protection insurance can help replace part of your income if illness or injury stops you working. Meanwhile, household bills and other financial commitments may continue. ABS helps you understand the questions that matter before you arrange cover.
Income protection insurance is designed to provide a monthly benefit if illness or injury prevents you fromworking, subject to the policy terms. It can be relevant where regular income supports household costs, loans, school fees, business commitments or savings goals. It is different from life, trauma and total and permanent disability insurance; each type of cover has different triggers and potential benefits.
Before arranging cover, consider how long you could manage without your ordinary income, the monthly expenses you would need to meet and any cover already held through super. A useful comparison then looks at the waiting period, benefit period, definition of disability or incapacity, occupation, minimum work hours, exclusions and premium type.
Insurers commonly assess information about occupation, earnings, health and lifestyle. Accurate disclosure is important. The Product Disclosure Statement sets out the relevant definitions, limits, exclusions and claims requirements. ABS can help explain the terminology and identify the questions worth asking, while the final cover is subject to insurer acceptance and policy wording.
For independent consumer information, read the Australian Government’s MoneySmart income protection guide. It explains waiting periods, benefit periods, underwriting and questions to ask before buying cover.
ABS Insurance Brokers can also help clients explore our insurance solutions, business insurance, construction insurance and aviation insurance. The right next step is a conversation about the circumstances, not a guess based on price alone.
It is designed to provide a monthly benefit if illness or injury prevents you from working, subject to the policy terms, waiting period and eligibility conditions.
The waiting period is the period you generally need to be unable to work before an eligible benefit may start. It is selected when cover is arranged.
The benefit period is the maximum time an eligible monthly benefit may be paid. Available options and conditions vary between policies.
Some super funds provide default income protection. Check the policy terms, cost, eligibility and what happens if the account becomes inactive or you change jobs.
Applications commonly ask about income, occupation, health, lifestyle and other relevant matters. Answer accurately because non-disclosure can affect cover or a claim.
