How does income protection insurance work in Australia?
Income protection insurance in Australia is designed to protect you financially if you are unable to work due to illness or injury. The policy will pay you a regular income until you are able to return to work or until the end of the policy term, whichever is sooner. Policies generally do not cover redundancy, that’s a separate type of insurance.
What are the benefits of income protection insurance?
The benefits of income protection insurance include peace of mind knowing that you will have an income if you are unable to work, and that your bills and other expenses can be covered.
What are the eligibility requirements for income protection insurance in Australia?
Generally, to be eligible for income protection insurance in Australia, you must be aged between 18 and 65, working at least 20 hours per week and be a permanent resident of Australia (or seeking residency). Some more riskier occupations have a maximum entry age next birthday of 60 requirement
How much does income protection insurance cost in Australia?
The cost of income protection insurance in Australia will depend on factors such as your age, gender, occupation, smoking status, and the amount of cover you choose. You can get a free quote from Spotter Life. Generally speaking, the older you or the riskier your occupation the more you pay for income protection insurance. If you have a higher income, and wish to cover the maximum 70% , the costs will be higher as well.
How do I make a claim on my income protection insurance in Australia?
To make a claim on your income protection insurance in Australia, you will need to contact your insurer and provide them with evidence of your illness or injury, as well as details of your current income and expenses. Spotter Life can help you with this process.
What is the difference between level and stepped income protection premiums?
Level premium income protection insurance policies have premiums that do not increase with the age component of your policy throughout the policy term, while stepped premium policies have premiums that increase each year based on changes in your age profile.
What is the maximum percentage of income that is covered under income protection?
The maximum percentage of income that is covered under income protection is 70%. You can choose cover for less than 70%. Older income protection policies covered 75% of your income but in recent years, to lower the cost of income protection, the level was set at 70%.
What is the difference between a retail income protection insurance policy and a group income protection policy?
The difference between a retail income protection insurance policy and a group income protection policy is that a retail income protection insurance policy is purchased by an individual, while a group income protection policy is purchased by an employer for its employees or under a superannuation group cover arrangement.
What evidence do you need to go on an income protection claim?
There is no one definitive answer to this question, as the evidence required to support an income protection claim in Australia may vary depending on the specific policy and insurer. However, as a general guide, claimants may be required to provide medical evidence, such as a doctors or specialists report, to support their claim, as well as financial documentation to show their loss of earnings. The insurance company may involve their own medical doctors to assess a claim.