These are some of the most common questions we asked about income protection:
These are some of the most common questions we asked about income protection:
Income Protection typically covers your income if you are unable to work due to a sickness or accident.
In general, income protection covers up to 75% of your income. You may be able to extend this to 85% with certain insurers with the additional 10% helping to cover mortgage repayments and super contributions.
Generally income protection is available to those who are self employed. If you are looking at taking out income protection, you should consider your waiting and benefit period options and what proof of income you must provide.
In order to prove your income for someone who is self employed, you will need to provide payslips, business profit and loss statements and a balance sheet.
Generally you can claim if you suffer a sickness or accident that leaves you temporarily disabled and unable to work for longer than your waiting period. Unlike workers compensation, the injury or sickness does not have to be work related and you are covered 24/7, 365 days a year worldwide.
Circumstances in which you might claim may include a broken leg or a heart attack.
You will start to accrue your monthly benefit at the end of your waiting period. Your waiting period is the amount of time before your benefit period starts.
General waiting period options include:
Generally the longer your waiting period is, the cheaper your premiums.
The policies we compare do not offer cover for redundancy. Select insurers may offer to cover your minimum mortgage repayments if your loan is taken out through a bank which is aligned with an insurance company. Other criteria will apply.
While both TPD and income protection offer cover for disability, they are two completely different types of cover.
Whereas TPD covers total and permanent disablement and pays a lump sum benefit, income protection covers total disablement and pays a monthly benefit. It is specifically designed to protect your income if you are unable to work as a result of your disability.
To make a claim you will need to follow the below steps:
We have a specialist claims team who can assist you with all your claims needs and who will guide you the process.
In 2013, insurers paid out over $5 billion in claims, including over $1 billion for income protection.
The leading causes for income protection claims included:
Did you know you can claim your income protection premiums as a tax deduction? As income protecting is income protecting in nature, the Australian Taxation Office allows you to claim the deduction, potentially saving you money.
The amount you can claim will depend on your marginal rate of tax. For example if you are earning between $80,000 and $100,000, you will be able to claim back 37c for each dollar of income protection premiums you are covered for.
Understanding your obligations and providing accurate information during the life insurance policy application process is crucial!
A 5% discount applies to RACV members, and spouses who take out a new insurance policy from any of AMP Elevate (Life, TPD or Trauma insurance) policies.
Generally in order to take out life insurance or a related life insurance product you need to be an Australian permanent resident or citizen.
We’ve developed 5 steps you can take today to provide you and your loved ones with more certainty that your life insurance policy will pay your claim.
When you’re unable to pay your home loan, you need to cut costs. We show you how you can reduce insurance costs by managing your income protection premiums.
We answer the top 10 life insurance questions we get asked every day. These will help most people however feel free to ask us any others you would like to know.
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