We all need the insurance to stay financially sustainable despite unfortunate circumstances, such as accidents or sickness. The bills will keep piling up, we still need to eat and if applicable, we’ll have to keep paying for our children’s expenses. This is where Income Protection Insurance is helpful.
Read on and know more about how you can get coverage:
What is Income Protection Insurance?
Income protection insurance is a policy offered by insurance companies to manage expenses if you cannot work for a period of time due to sickness, injury or some other major trauma. When you do need it, the policy may cover you monthly for up to 75% of your income. You will be paid until you can return or until you reach retirement age.
Who needs it?
Income protection claims can be purchased by anyone, but are most commonly chosen by full time working Australians who carry out physical jobs. They may belong to the following industries:
- Construction, janitorial and maintenance
- Healthcare and medical
- Logistics and warehousing
- Mining and power plants
Aside from blue-collar workers, it is also applicable for white-collar employees who’d like to be protected from accidents and sickness. Income Protection Insurance can also cover persons who may be faced with redundancies.
If you’re currently employed and most of your revenue comes in the form of monthly pay, you’ll definitely need a financial cushion to maintain your standard of living. In case of accidents, you can also make income protection claims, on top of the workers’ injury benefits you are entitled to from your employer. Generally income protection insurance benefits do not affect common law damages or workers compensation entitlements.
What are the benefits?
Your benefits will depend on the condition you are suffering from and what has been settled with your provider. If you were injured or have been involved in an accident, their corresponding monthly coverage will be adjusted based on the following:
- Funds for illnesses and disabilities, whether recurrent or not
- Budget for treatments and rehabilitation
- Coverage for any surgery needed
- Home and nursing assistance
How does it work?
Since there are mainly two branches of Income Protection Insurance, you can agree on a payment schedule and when needed, a funding provision on these terms:
With an insurance provider
This may be arranged with your employer or a separate financial institution. Your chosen levels of coverage may vary depending on the conditions you might experience in the future (such as high blood pressure, diabetes or cancer).
Packages usually come in bracket amounts, along with their corresponding budgets to be used for a need you’re estimated to encounter (such as hospitalisation, surgeries, out-of-work, etc.). The rates will be cut into monthly flows of sustaining income.
Income payments may also be applied via your super. By submitting your application, you will be arranged to pay for a fee straight from your monthly salary. This is very much like setting aside an amount for your superannuation, only you’ll have to budget up for another facility to serve as your safety net in the near future.
Your choice of coverage will be based on categories which revolve around TPD (or Total and Permanent Disablement), Death or Salary Provision within a specific period of time.
How do I make a claim?
To make a claim, you need to contact your provider and fill out the necessary forms. It will usually take one to two months for your request to be processed and assessed.
How lawyers can help you with this claim
Most employees are not familiar with the ins and outs of claiming income protection insurance. This is where legal expertise comes in. Kerin Lawyers can help you navigate the sometimes difficult path with insurance companies. We can recommend medical specialists who may be able to assist you in substantiating your medical condition, making you eligible to claim your insurance benefit.
Kerin Lawyers is ready to help you with the necessary steps to get you covered during trying times. Learn more about Income Protection Insurance at set an appointment with us by calling 1300 LAWYER or 1300 529 937 today.