Read the FAQ's

A: This is explained in the policy issued by TOWER Australia Limited (ABN 70 050 109 450), but the following is a brief overview.

Your monthly payout will be the lesser of:

• the cover you have applied for and TOWER accepts, and
• 75% of your pre-disability monthly income.

Generally, monthly income is calculated as a before tax average over the last 12 months before the accident or illness happened (if self-employed, then it’s after the deduction of any business expenses).

If you receive other income while you’re not working (such as from another income protection policy, workers’ compensation or social security) and this combined with payments from the Income Protector Plan adds up to more than 75% of your pre-disability monthly income, your Income Protector Plan payments will be reduced.

It’s also important to know that while your premiums are tax deductible, your monthly payouts are assessable for tax.

A: Your first claimable month will start once you’ve been unable to work due to accident or illness for the duration of the waiting period you selected, (depending) on whether you've covered for accident or illness or both accident and illness.

Payouts are made monthly in arrears and will continue for each month while you're unable to work, up to 6, 12 or 24 months, depending on the payout period applying.

For example, if your Income Protector Plan has a 30-day waiting period, your first payout would be 60 days after you were first eligible to claim (the 30-day waiting period plus 30 days because claims are paid at the end of the first claimable month).

A: You’re covered for accident and/or illness depending on your application and TOWER’s assessment. The type of accident and/or illness covered is explained in the policy, but there are some things which are not covered, such as claims that arise directly or indirectly from:

• Any mental health disorder, including anxiety disorders, depression, stress, adjustment disorders, eating disorders, emotional or behavioural disorders, disorders related to fatigue, including chronic fatigue syndrome, drug or alcohol abuse, psychosomatic disorders, or any treatment complications
• Alcohol-related illness or injury (TOWER will not attempt to reject a claim if you are under the legal blood alcohol limit for driving)
• Drug-related illness or injury (other than those prescribed for you by a Medical Practitioner and taken in the correct dosage)
• Pregnancy, unless you are unable to work due to illness for longer than 3 months after the pregnancy ends
• Terrorism, civil commotion or unrest, guerrilla or insurgent activities in a country outside Australia, if at that time the Australian Government has advised reconsidering the need to travel to, or advised against all travel to that country
• War or an act of war
• Any intentional self-inflicted act
• Any other specific exclusion agreed with you at the time of your application

Accident Only Plan
If you have an Accident Only Plan, you won’t receive payouts if you suffer an accident that’s entirely or partially the result of, or contributed to by, an illness, for example a heart attack.

Illness Only Plan
If you have an Illness Only Plan, you won’t receive payouts if you suffer an illness that is entirely or partially the result of, or contributed to by, an accident, for example an electrocution that causes a heart attack.

A: It’s extremely important for your peace of mind to provide all the information we ask for at the time of your application. If you don’t provide information accurately and honestly, it’s possible that your policy will not be valid and any claim you make will be denied. Obviously, the extra stress this would place on you and your family would be enormous, so make sure you’re entirely honest in your application.

When a claim is made, TOWER will usually request a complete medical history, which can include details of any illnesses or treatments you may have had before taking out the policy.

A: As long as your premiums are paid when due, your cover will continue right up until the Plan’s anniversary after you turn 60. Your policy will end on that date with no further cover provided.

A: It’s important to note that the underlying premium rates aren’t guaranteed. However, you’ll never be singled out individually for a premium rate increase. Any increase will only apply to all policies, or group of policies, using the same table of rates and you’ll be given at least 30 days notice.

As you’d expect, your premiums go up as you get older and if you increase the amount of your cover. This also applies if you have ‘Inflation Protection’ on your policy, where your cover goes up each year according to the change in the Consumer Price Index (CPI) or 3%, whichever is greater.

A: If you cancel within 30 days after receipt of the policy, you will get a refund of any premiums paid. However, the Income Protector Plan is not a savings plan and has no cash value, so if you cancel after the first 30 days you won’t get any premiums back.