When will I get paid from my income protection policy?

You'll start accruing benefit payments after your waiting period is over and then you'll start receiving payments in accordance with your insurer's pay cycle. Most insurers pay in arrears monthly, so you'll typically expect to receive your first payment a month after your waiting period ends.

How much will my monthly income protection benefit be?

It depends on the sum insured amount or "benefit" amount in your policy. This is usually up to a percentage of your income, with most policies we've seen covering up to 70% or 75%. Generally, the higher your benefit is, the higher you'll be paying for your premiums.

How do I know what my income protection waiting period is?

When you sign up for a policy, you'll typically be able to choose from a range of set waiting periods. This will stay on your policy unless you make changes to it in the future. You can always check your income protection policy documents or contact your insurer directly if you're unsure.

Can I change my waiting period later on?

This will depend on the policy you choose. Most insurers will let you adjust your policy at later stages, such as adjusting the payment structure or increasing or reducing the level of cover. If your policy allows you to change your waiting period after you're covered, your premiums will be affected. For example, if you reduce your waiting period from 30 to 14 days, your premiums will increase. However, if you increase your waiting period, your premiums will most likely come down. Make sure that you won't be charged by your insurer for simply changing your policy waiting period.

Can I return to work during my waiting period?

If you happen to return to work during your waiting period, you'll be ineligible to receive your benefits with many policies. However, some providers will only need you to meet a minimum number of days in your waiting period not working to qualify for a payment.

Can I return to work during my benefit period?

The agreed benefit sum and period will only apply as long as you're considered unable to work. If you go back to work before it ends and start receiving some income again, most income protection policies will pay you a partial disability benefit instead. These are smaller amounts that are designed to top up any gaps in your regular income until you return to your full capacity.

Cameron Thach, Writer at Finder

Cameron Thach

Writer

With a background in writing across education, Web3, and finance, Cameron’s mission is to create content that speaks directly to readers in a way that’s easy to understand, helping them navigate complex topics with confidence. Cameron studied a Bachelor of Commerce, Economics and Marketing at Macquarie University, graduating in 2019.

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