At InsuranceLine, we promise to answer all of your questions in plain English, so you know exactly where you stand.
Here you can find answers to the most common questions we get asked about Income Protection Plus. For anything else, call us on 13 77 87 or read the Income Protection Plus Product Disclosure Statement.
What is the difference between Rate Saver and Time Saver?
Time Saver is popular for those who want a fast and easy application process cover without the need to answer medical and lifestyle questions up front. This greatly reduces the time required to join the plan and instead, we will gather this information at the time of a claim.
Rate Saver on the other hand, is available for those who are happy to answer some health and lifestyle questions in return for more great features, including a cheaper premium, higher cover amount, shorter Waiting Periods and longer Benefit Periods. It also has less exclusions and limitations.
If you’d like to know more about which option might be best for you and your family, see the table below:
*Benefits are also tax assessable, just like your normal income
If you’d like to know more about which option is right for you, call us on 13 77 87 or read the Income Protection Plus Product Disclosure Statement.
If I make a claim, how much will I get?
Your monthly payout will be the lesser of:
• The cover you have applied, and been accepted for or
• 85% of your pre-claim monthly income.
Generally, we calculate monthly income as a before-tax average over the last 12 months before you became sick or injured. If you’re self-employed, we’ll calculate this value after deducting any business expenses.
If you receive other income while you’re not working - for example, a payout from another income protection policy, workers’ compensation or social security - and this, combined with payments from your cover adds up to more than 85% of your pre-claim monthly income, we will reduce your payouts.
Remember that while your premiums are tax-deductible, your monthly payouts are assessable for tax.
When would my payouts start?
Generally, provided we receive all of the completed claim requirements, we pay income protection payouts one month in arrears, after the waiting period has finished. So, if your waiting period is 28 days, and you become eligible to claim on 1st September, you’ll see out this waiting period, and receive your payment at the end of October, as claims are paid at the end of the first claimable month. After this, you’ll receive your payout at the end of each month, until your benefit period runs out or you are able to return to work.
How long would I get payouts for?
Payouts will continue until the benefit period you’ve chosen runs out, or you are able to return to work. With Time Saver, you can choose a benefit period of 6, 12 or 24 months when you start your policy.
What's not covered?
• Mental disorders: Anxiety disorders and depression; stress or adjustment disorders; eating disorders; emotional or behavioural disorders; drug or alcohol abuse; psychosomatic disorders, or any treatment complications.
• Fatigue: Disorders related to fatigue, including Chronic Fatigue Syndrome.
• Drug and alcohol related illness or injury: Taking intoxicating liquor (however, we will pay a claim if you are at or under the legal blood alcohol limit for driving); taking drugs (unless prescribed to you by a medical practitioner and taken in the correct dose).
• Cancer, stroke or heart attack: At any time in the first six months after your plan starts.
• Pregnancy: Normal and uncomplicated pregnancy.
• War and terrorism: Terrorism, civil commotion or unrest; guerrilla or insurgent activities in countries outside Australia, if the Australian government has advised you to not travel to that country; war, or an act of war.
• Self-harm: Any intentional act of self-harm. This includes exposing yourself to risk of sickness or injury for any reason.
• Criminal activity: Any illness or injury that occurs as a result, or during, committing or attempting to commit a criminal offence.
• Other: Any other specific exclusion agreed with you first.
In addition to these, there are some further situations in which we won’t pay a benefit if you have the Time Saver option. These are:
Known or pre-existing conditions: Any sickness, injury or medical condition that you had, or had symptoms of, at any time in the five (5) years prior to the start of your plan (or five years prior to a benefit increase, where applicable), whether diagnosed or not, for which you sought treatment or advice, or of which you were aware or of which someone in your position should have reasonably been aware.
The following are also considered to be pre-existing medical conditions for any stroke, haemorrhage or heart-related event if they occurred in the five years before you started your plan:
• Body Mass Index of 40 or higher
• Systolic blood pressure having exceeded 160 mmHg and diastolic blood pressure having exceeded 100 mmHg
• Total blood cholesterol having exceeded 7.0 mmol/L
• Being a diabetic with any one of the following: proteinuria, kidney disease, retinopathy, neuropathy or admittance to hospital for treatment of diabetes
• Aviation: If you have been left ill or injured by being involved in any form of aviation apart from being a paying passenger on a commercial flight.
• Dangerous occupation or pastime: Willingly and knowingly exposing yourself to risk of sickness or injury for any reason including recreation, gain, reward or regular remuneration.
• Large height/depth/speed: Meaning engaging in work or a lifestyle activity that involves explosives, weapons, heights above 20m, depths below 30m underground or underwater or speeds above 130km per hour, other than as a fare-paying passenger on a commercial airline.
• Football related injuries: Resulting in less than 90 days out of action.
• Back injuries: Resulting in less than 90 days out of action. Unemployment Cover:
For Unemployment Cover, you are not covered for unemployment within the first six months of your cover or if your unemployment is a result of any of:
• sickness or injury
• poor job performance
• loss of qualification or licence
• seasonal employment
• a contract ending or being terminated
• resignation, retirement or abandonment of employment
• personal or business insolvency
• misconduct, dishonesty or criminal activities
• any strike or labour disturbance
• unemployment occurring outside Australia
What happens if I leave information out when I apply?
You must give us the information we request when you apply for Income Protection Plus, and answer all of our questions honestly and completely. That’s because if you do make a claim, we’ll need to check your medical, employment and financial records. If it turns out you didn’t reveal something important, we may have to refuse your claim.
That’s not something we want to do, especially when you and your family are under stress. So it’s best to be open with us from the start.
When does my cover end?
As long as your premiums are paid when due, your sickness, injury and Permanent Disability cover will continue right up until the renewal date after you turn 75. On that date, your policy will end. Your Unemployment cover ends at age of 65 or earlier if cancelled. Kids Injury Cover ends when the insured child turns 18.
Will my premiums go up?
Premiums generally increase with age each year at the anniversary of your plan or if you increase cover. Unless otherwise requested, premiums also increase each year for the automatic adjustment for inflation (your level of cover will also increase by the same percentage).
The underlying premium rates are not guaranteed, but once your plan has started, you will never be singled out for a premium increase. Any increase will be applied to all policyholders to which the same premium rate table applies, with 30 days written notice.
If I cancel my policy, will I get a refund?
When you take out Income Protection Plus, we give you a 30 day money back guarantee - so if you cancel your policy in the first 30 days, we’ll give you a complete refund.
After that, there are no refunds. Your policy simply gives you income protection insurance cover - it is not a savings plan.
What happens if I can’t pay my premiums?
Let us know immediately if you can’t pay a premium so we can help you work out an alternative arrangement. Your cover will cease if your premiums are more than 30 days overdue and you will lose this valuable benefit.
Who will I be dealing with during my claim?
You will be given a dedicated Claims Manager whose details will be on the accompanying cover letter that we’ll send in the event of a claim. He or she will personally oversee your case and help you work through the details of your claim.
You can contact your dedicated Claims Manager while you are settling your claim. They will explain anything that is not covered here or talk through any concerns you might have.
Want to know more about Income Protection Plus Time Saver? Call 13 77 87 or get a quote.