Income Protection Claim
Income protection can be purchased as a standalone policy or, be a part of your Superannuation. The Monthly Benefit entitlement is allowed up to 75% of your annual income/earnings, averaged over the previous 1 or 2 years prior to the date of claim.
The policy is designed to keep an income stream coming to you to cover normal living expenses.
If you become totally disabled due to an injury or illness, after serving a Waiting Period (normally 1 month), you may be entitled to be paid a Monthly Benefit subject to You:
- Working in your occupation at the time of claim
- Earning an income/wages,
- Are under the regular care and following the advice of a medical practitioner.
The Monthly Benefit is payable in arrears i.e. after serving the 1 month Waiting Period, your first benefit is not paid until the end of the following month. This helps with eliminating short term claims and keeps the premium at an affordable level.
The Monthly Benefit is payable for 2 years, 5 years or until age 65, depending on which cover you selected or, as per the prescribed default benefit period as determined by your super fund trustees. Income Protection claims can also be backdated.
The Monthly Benefit is treated as assessable income and so must be declared as such in your personal income tax return.
