Policy Options

When selecting an Income Protection policy, there will be a number of options for you to choose from designed to enhance your policy to suit your needs.

Generally, these policy options will be paid for additional options but select insurers may offer some of these options built into their policies. Please consult the relevant Product Disclosure Statement or contact one of our advisors for more information.

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Please note that this is a general list only and not all insurers will offer these exact options:

  1. Increasing Claims
  2. Day 1 Accident Cover
  3. Bed Confinement
  4. Needlestick
  5. Total Disablement Booster
  6. Mental Health Discount
  7. Business Expenses Insurance
  8. Lump Sum Benefit
  9. Specified Injury Benefit
  • Increase your benefit while on claim with the increasing claim option. This allows for your monthly benefit to increase by either annual CPI increases or by a pre-determined percentage as outlined in your PDS. Generally this option is more suited to benefit periods which are longer than 2 years.
  • Start receiving a partial benefit during your waiting period with Day 1 Accident Cover. You will be paid 1/30th of your monthly benefit each day you are unable to work until your waiting period ends, when if you are still unable to work, you will go onto your full monthly benefit. Any determination that you are unable to work must be made by a medical practitioner.

However some policies will require you to have a minimum of 14 days or 30 days off before you are eligible to get paid your Day 1 Accident Benefit.

  • The bed confinement option provides additional payment if you are confined to a bed or need to be near a bed for at least 3 consecutive days during the waiting period due to sickness or accident. You will generally receive 1/30th of your monthly benefit for each day of bed confinement, until the end of your waiting period.
  • Medical professionals can protect themselves financially with Needlestick Cover from the risk of illness caused by HIV, Hepatitis B and C with Needlestick Cover.
  • You can increase your monthly benefit by 33 per cent with the total disablement booster payment option in the event you suffer a total and permanent disability.

Generally, in order to claim using this option, you will need to totally and permanently disabled and unable to perform at least two of the activities of daily living:

  1. Bathing and or showering
  2. Dressing and Undressing
  3. Eating
  4. Using the toilet for hygiene purposes
  5. Being able to move in and out of bed, a wheelchair unaided.
  • Get a discount on your premiums with the mental health discount option if you are willing to remove mental disorders from the list of the conditions you are eligible to claim for.

There are two types of mental health discount options:

  • You choose to remove mental health disorders from your list of claimable conditions.
  • You retain your ability to claim on a mental health disorder but your benefit period is generally capped at a maximum of 24 months.

Generally if you have a history of mental health disorders, this option is unavailable. A mental health disorder is generally defined as:

Any disorder classified in the Diagnostic and Statistical Manual of Mental Disorders published by Thee American Psychiatric Association which is current at the start of the period of disability.

  • You can protect your business with the Business Expenses Insurance. Designed for the self employed, it can pay a monthly benefit covering fixed business costs such as rent, electricity and other overheads if you are unable to work due to a sickness or accident.
  • You can choose to receive a lump sum with the Lump Sum Benefit Option. This option is mainly designed for people who go on a claim due to suffering a total and permanent disability.
  • You can receive a benefit even if you are working with the Specified Injury Benefit Option.

If you suffer from an injury specified in your PDS, the specified injury benefit option allows for you to receive your monthly benefit even if you are working.

Please note that this is a general list and does not include every option offered by each life insurance company. For more information on what Income Protection policy options are available to you or if you have any more questions on Income Protection Insurance please call us on 1300 135 205.

Published: December 18, 2012
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  • Lump Sum Payment

    Include the lump sum benefit option and be eligible to receive a non tax assessable lump sum benefit, adding greater flexibility to your income protection policy at claim time.

  • Specified Injury Benefit

    The specified injury benefits pays you a benefit if you suffer from a specified injury, even if you still working, with no waiting period applicable!

  • Needlestick Cover

    Doctors, nurses and other medical professionals should consider adding Needlestick cover to their income protection policy to cover them for Needlestick injuries.

  • Total Disablement Booster Payment

    Receive 75% plus up to 33% more on your income protection monthly benefit if you suffer a TPD and you have included the total disablement booster option.

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