How do I apply for income protection insurance?

You are generally eligible for income protection insurance if you are between 18-59 years old and working at least 20 hours a week, for at least 12 months before your application. This includes individuals who are employed full-time, part-time, on a contractual basis, or who are self-employed.

During your application for income protection, your insurance provider will ask occupation, health, and lifestyle questions. These queries may be about your current job, income, and medical history. Be sure to answer all questions honestly, as non-disclosure can result in denied claims down the track.

Your application will then be assessed, and your premiums calculated based on how risky you are to insure. This includes any health-risk behaviors such as occupational hazards, smoking, playing dangerous sports, and others.

When will I be eligible to claim for income protection?

You should be eligible to claim your income protection benefits if:

• You have a disabling illness or injury that is listed as covered by your policy.
• The impact of such disability is a decrease in your capacity to work, which leads to a significant reduction in your income
• Your disability persists until the end of the waiting period set by your policy
• You are unable to work during the waiting period

How do I claim for income protection?

To claim your income protection insurance, contact your insurance provider as soon as your illness or injury renders you unable to work.

You can typically put in your claim over the phone, but you might still have to fill out paperwork to be sent to your provider. These forms may include: a claim form, a salary continuance report with notes from your doctor, a tax file number declaration form, and an income replacement employer report, among others.

Once the paperwork has been sent to your insurance provider, they will assess your claim after the waiting period expires. The waiting period is the time between putting in your claim and actually receiving your benefits. This may take anywhere between 30-180 days, depending on the terms agreed upon when you applied for cover. Generally, the cheaper your policy, the longer your waiting period.

To reduce the days that you go without income, it may help to calculate your available sick leave balance at work and align it with the number of days in your waiting period. Check how much cash you have in your emergency fund as well, or consult with your family and see if anyone can take on your role in the event that illness will strike and you have to wait for your insurance protection to kick in.

You will usually not have to pay income protection insurance premiums during the time that you are receiving your income protection benefits.

Make sure to disclose details of your illness or the incident that caused your injury truthfully to your insurance provider. Do not alter or withhold any information that may influence your insurance provider’s assessment of whether you should be allowed to take out a claim. If you do so, your insurance provider may have a legal right to cancel your income protection policy.

What kinds of income protection benefits can I claim?

You can claim two types of income protection benefits:

• Partial disability benefit: Payable if you are partially disabled and unable to perform one or more of the major duties of your occupation.

You are still capable of working, but your monthly salary is now less than your previous income.

• Total disability benefit: Payable if you are totally disabled and unable to perform one or more of the major duties of your occupation.

You are currently not working in any capacity and not bringing in any income.

Are there exceptions to claiming income protection insurance?

Note that you may be ineligible to claim income protection insurance if your illness or injury is a result of the following:

• A mental disorder or illness
• An intentional, harmful, self-inflicted act
• Attempted suicide
• Being under the influence of alcohol
• Being under the influence of illegal drugs
• Normal pregnancy
• War or other violent activity such as riots or civil disturbances
• Criminal or illegal activities

These exclusions vary by policy, and are listed in the terms and conditions of your policy.

Get started

Now that you know what to expect when you claim for income protection, it’s time to look at your policy options. Visit Income Shield to learn more about income protection insurance, or explore other forms of insurance you could take out to ensure the best coverage for you and your dependents.