If you are unable to work due to an injury or illness, you may be entitled to income protection insurance benefits. If you are successful in making a claim, you will receive monthly benefits. These benefits will provide financial support in place of your job salary.
Your insurance policy will decide on the monthly benefit amount and for how long the benefit period will last.
What Sort of Payout Can I Expect?
Your income protection insurance provider will assess your situation and define your inability to work. This will influence if your policy pays out. Your insurer will consider several things when making a decision on your disability income, including:
- Your current workplace duties and how your illness or injury may affect your ability to carry out these duties going forward. Your employer may also consider whether you could take on a slightly different role in your workplace that you are still able to carry out in your current state of health.
- Your current income, including sick pay. This will help an insurer to determine what you receive on an annual basis and ensure that you receive a set percentage of your salary per month. An insurer may consider your sick pay to determine whether you could live off it in the short-term while recovering from an illness or injury.
- The hours that you worked in your job before sustaining an injury or falling ill.
Keep in mind that the exact considerations your insurer will make vary from policy to policy.
If you are successful in your claim, and the insurer offers you an income protection benefit, you can expect it to cover between 50 and 85% of your salary. This may vary slightly depending on your own individual factors, as well as the type of insurance you have taken out.
Income protection benefits are not affected by income tax, so you’ll receive the exact amount stated in your policy agreement.
When Will I Start Receiving Income Protection?
If you have an active income protection policy, you can make a claim straight away – but don’t expect to receive payments promptly.
You will need to allow for a pre-agreed waiting period to pass before you start to receive benefits from your income protection insurance. This is usually between 2 weeks and up to 3 months , depending on your cover.
What If I’m Self Employed?
You can still receive the same income protection, offering the same financial support, if you were previously self-employed before becoming ill or suffering an injury. You will, of course, need to have taken out income protection specifically designed for people who work for themselves. Your superannuation fund may also automatically provide insurance cover, so be sure to check that if you haven’t taken out specific income protection.
At Life Matters Claims, we’re here to offer specialist support for people looking to make an income protection claim. We can make sure that your claim is dealt with fairly and efficiently, and we have a 100% success rate with all of our claims to date.