The impact of the coronavirus pandemic has been felt right across the country. Since early March, the closure of non-essential business services has led to over one million job losses – with these numbers only expecting to rise in the coming months. If you’re concerned about the possibility of being put out of work due to illness or accident, income protection insurance could help.
What is Income Protection?
Income protection promises to pay a percentage of your typical wage should you become incapacitated and unable to work due to illness or accident.
Income protection is usually available to both employed and self-employed people, and some insurance policies will provide cover in the case of involuntary unemployment – that way, if you’re made redundant, you may be eligible for income protection.
If you’re successful in your claim, payments are usually made to you monthly and you’re usually subject to a waiting period. A waiting period means that you’ll be required to wait a length of time between when your employment ceases and when you can make a claim. This can be anywhere from 2 weeks to 2 years depending on your cover!
How does it work?
Income protection insurance usually covers you for about 75% of your pre-injury salary. Your insurance policy will determine the frequency of payments, age limit restrictions, and the length of time that you’re entitled to claim for benefits.
Will I be eligible for income protection if I catch coronavirus?
If you’re diagnosed with COVID-19, and you’re put out of work for an extended period of time, you should be able to claim on your income protection policy. Even if you decide to purchase income protection from your insurer, today, you may still be covered, should you contract COVID-19 in the future
For most income protection policies, however, there’s usually a waiting period for illness.
Is it too late to get income protection insurance?
It’s never too late to enquire about purchasing income protection insurance directly with your super fund or insurer of choice. Even if you don’t end up needing income protection during COVID-19, you may need it sooner than you think!
Need help with your claim process?
If you’re ready to begin your Income Protection claims process, speak to a member of our team on 1300 784 108.