Your ability to earn an income is valuable and should be protected. With income protection cover, you can insure up to 75% of your regular income in the event that you are unable to work because of illness or injury. In some cases, income protection can even insure a certain percentage of employer superannuation contributions.
There are a number of questions to consider when applying for cover including:
- How quickly do you need the benefit payment?
- How long do you want the payment to last?
- Is the benefit to extinguish debt, finance recovery or to help modify your lifestyle?
- Do you have a current term life, total and permanent disablement or trauma policy?
- Would you be able to return to work in a full capacity?
- Do you have to provide for any dependants?
- What is the loss of salary for each month you are off work?
- Would you lose employer superannuation?
- Have you calculated the sick leave you have accrued?
- Would your home/car require modification to adapt to your disability?
Income protection cover can allow you to select a waiting period, being the time that you are unable to work before the insurer starts to pay you the benefit. Depending on the policy, this waiting period could vary from 14 days to two years.
Benefit periods are also applicable with income protection policies. A benefit period establishes how long the insurer will pay you benefits if you make a successful claim. Depending on the policy, benefit payment periods can vary from two years, up to and including age 65.