Income Protection Sydney

An income safety net

Income protection insurance, also known as salary continuance, can help you manage your expenses if you are unable to work for a certain amount of time.

When purchasing income protection, consider what other types of life insurance you need as well, such as life cover and total and permanent disability cover.

Do you need income protection?

Income protection insurance replaces the income lost through your inability to work due to injury or sickness. It is an important consideration for anyone who relies on an income. It is especially suitable for self-employed people, small business owners or professionals whose business relies heavily on their ability to work.

Choosing an income protection policy

Each income protection policy has its own definition of disability and range of benefits. Income protection usually offers cover for up to 75% of your gross wages for a maximum time period (e.g. 2 years or to age 65). Income protection policies may be stepped or level, make sure you understand what sort of policy you are getting.

You will need to pick a waiting period when you select your level of cover. This is the period of time (often 14 to 90 days) before you can make a claim.

Take into account your leave balances (e.g. annual, sick and long service leave) and access to emergency cash when choosing your time period.

Many super funds offer income protection.

Things you need to tell your insurer

You need to tell your insurer anything that could affect their decision to insure you when you are applying for, renewing or changing a life insurance policy. You also need to tell the life insurer about things that have happened between the time you apply and when the insurance cover starts.

Some insurance companies need you to give them details of your medical history. If you don’t have the information they require you can get it from your doctor. If you don’t give the insurer this information they may refuse your claim and this could affect any life insurance you apply for in the future.

Making a claim

If you need to make a claim on your income protection policy, you will need to provide evidence of your illness or injury. Ask your insurer exactly what they need from you so your claim gets processed as quickly as possible and there’s no confusion.

The income protection payments you receive from a successful claim will be for the period you are unable to work, in line with the policy.

Income protection gives you a steady source of cash in case you get injured or sick and cannot work. This means you can focus on getting better and not on how you’re going to pay the bills