Income Protection Insurance

Here you can find answers to the most common questions we’re asked about our Income Protection.

For anything else, call us on 13 77 87 or download the Income Protection Insurance Combined Product Disclosure Statement (PDS) and Financial Services Guide (FSG).

• What is Income Protection Insurance?

  Our Income Protection Insurance provides a payout of up 85% of your monthly income up to $10,000 per month if sickness or injury leaves you unable to work. It is a way to help replace your income and help protect yourself and your dependants from financial stress.

  You can choose how to use your payment - to help with rent or mortgage repayments, car repayments, household bills, credit card payments or even the basics like food and clothing.

  Income protection is a monthly benefit that pays up to 85% of your income while you're unable to work, and is based on your earnings prior to claim.

• How much Income Protection can I get?

  Sickness and Injury Cover insures up to 85% of your income, with a maximum payout of $10,000 per month and you can choose a benefit payout period of 6, 12, 24 months or 5 years.
  
  
  Want to know more about our Income Protection? Get a quote online or call 13 77 87 today.

• What is a Waiting Period? When would my Income Protection payouts start?

  The Waiting Period is the amount of time after a Sickness or Injury occurs, or, if applicable, you become Involuntarily Unemployed, that you have to wait before your payments commence. You can choose a Waiting Period of 14, 28, 60 or 90 days for Sickness and Injury claims. The longer the Waiting Period you choose, the lower the cost of your Cover. If you are off work and make a claim, you will not receive any payments for the duration of your Waiting Period. Once you’ve been continuously off work for the duration of your Waiting Period, you’ll start receiving payments a month later, as they’re paid a month in arrears.

• What is a Payout or Benefit Period? For how long will I get Income Protection payouts?

  The Payout Period or Benefit Period is the maximum amount of time you can receive payments when you are unable to work due to Sickness, Injury or Involuntary Unemployment. You can choose a Payout Period of 6 months or 1, 2 or 5 years. The Payout Period for Involuntary Unemployment Cover is always a maximum of 3 months. Benefit payments will continue until the Payout Period you’ve chosen runs out, or you’re able to return to work.

• Will my Income Protection premiums go up?

  Premiums generally increase with age each year at the anniversary of your insurance, 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 Policy has started, you will never be singled out for a premium increase. Any increase will be applied to all policyholders to whom the same premium rate table applies, with 30 days written notice.

• If I make an Income Protection Insurance claim, how much will I get?

  Your monthly payouts are based upon either your cover amount (that you have applied for successfully), or 85% of your pre-claim monthly income – we’ll pay you whatever amount is lower.
  
  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 deduct business expenses to calculate this amount.
  
  We may reduce your payouts if you receive other payments while you’re not working – for example, a payout from another Income Protection policy, workers’ compensation or social security. If this extra income plus your cover payments add up to more than 85% of your pre-claim monthly income, we’ll reduce your payouts proportionally.
  
  Remember that while your premiums are tax-deductible, your monthly payouts are assessable for tax. 

  
  

• What’s not covered in Insuranceline's Income Protection Insurance?

  Always consider how cover exclusions and restrictions may affect you if you need to claim. This policy does not cover mental health related conditions, for example. 
  
  Alternative products and cover options may be available through other insurance providers, including directly from the insurer of Insuranceline products TAL.

  As with all insurance policies, there are some things that are excluded:

  • Any mental health disorder, including anxiety disorders and depression; stress or adjustment disorders; eating disorders; emotional or behavioural disorders.
  • Disorders related to fatigue.
  • Drug and alcohol related Sickness or Injury.
  • Cancer, stroke or heart attack in the first six months after your cover starts.
  • Normal and uncomplicated pregnancy.
  • War and terrorism.
  • Any intentional self-inflicted act, including exposing yourself to risk of sickness or injury for any reason.
  • Committing, or attempting to commit, a criminal offence.
  • We may also apply other specific exclusions to your policy. These will be agreed with you when you take out your policy.

  If you were not able to, or only partially able to, perform your regular daily activities before you started your policy, a benefit may not be payable.

  Permanent Disability Cover also has specific cover terms and exclusions.

  Involuntary Unemployment Cover 

  Involuntary Unemployment Cover is not available for purchase online. To apply, please call us on 13 77 87.

  If you take out optional Involuntary Unemployment Cover, please be aware that you’re not covered where you became aware of, or you were notified of, redundancy within the 6 months immediately following the start of your cover. Also, you’re not covered if your Involuntary Unemployment is a result of any of the following:

  • Sickness or injury.
  • Voluntary redundancy or resignation, or abandonment of employment or retirement.
  • Unemployment arising as a consequence of circumstances known to you, or where your employer has given notice (including but not limited to mainstream media announcements), prior to the Cover Commencement Date, of an intention to reduce staff numbers by way of redundancies.
  • An employer terminating the Life Insured’s employment during a probationary period.
  • Being personally insolvent or under any form of personal insolvency administration, including bankruptcy, due to personal debts.
  • Your business being unable to pay its debts, or you or your business being served with any document to commence proceedings or process for you or your business to be placed in any form of insolvency administration for business-related debts, at any time prior to or within the first six months from your Cover Commencement Date.
  • The end of employment in a family business controlled by you or an Immediate Family Member.
  • Misconduct, dishonesty, or engaging in criminal activities, or illegal acts, or drug and/or alcohol abuse or intoxication.
  • Poor performance in carrying out your occupation including dismissal following formal disciplinary procedures.
  • Your refusal of any offer of reasonable alternative employment by your employer linked to your education training and experience.
  • Any strike or labour dispute or labour disturbance involving you or your employer.
  • The loss of, or not maintaining the currency of any licence, authorisation or permit required to operate the business, including the loss of a driver’s licence, trade or professional certification.
  • You cease work due to the seasonal, casual or temporary nature of employment, or a contract (including a fixed term contract), is terminated early or completed.
  • Involuntary Unemployment occurring outside Australia.
  • If you’re in jail or otherwise lawfully detained.
  • No Involuntary Unemployment Cover Benefit is payable if you were not Self-Employed or employed on a permanent basis or were working for less than 30 hours a week immediately prior to your claim, or you’re not actively seeking work or are not registered with Centrelink or a Recruitment Agency approved by us to seek work while on claim.
  
  

  For more details about what isn’t covered, see the Combined Product Disclosure Statement (PDS) & Financial Services Guide (FSG)

• What happens if I leave information out when I apply for Income Protection?

  You must give us the information we request when you apply for Income Protection, 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 tell us something important, we may have to refuse your claim.

• When does my Income Protection 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 Involuntary Unemployment cover ends at age of 65 or earlier if cancelled. 

• If I cancel my Income Protection policy, will I get a refund?

  When you take out Income Protection, 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 Income Protection premiums?

  If you think there will be a problem with paying your premiums because your budget has run over that month or you're unsure you'll have the money, please give us a call on 1300 880 750 at least 3 business days before your payment is due and we can help you with an alternative payment arrangement.

• Who will I be dealing with during my Income Protection 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’re 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 our Income Protection? Get a quote online or call 13 77 87 today.