How long does income protection last for?

Check your policy's 'benefit period' to find out.

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The length of time that your income protection is paid for (upon successful claim) is known as your benefit period. During the benefit period, your insurer pays your agreed monthly earnings up to a percentage.

Typical benefit periods on policies in Australia

Insurers typically offer the following benefit period options:

  • 2 years
  • 5 years

Long-term benefits are usually accompanied by a higher premium (the cost you pay for the insurance), as opposed to a lower premium for short-term benefits where the payout period is shorter.

Compare benefit periods from these income protection brands

Name Product Short Description Maximum Monthly Benefit Maximum % of Income Covered Maximum Benefit Period Waiting Period
Cover up to 85% of your Income (up to $10,000 per month) if you can’t work due to sickness or injury. Cover for 1,000 job types - full-time, part-time and self-employed.

5 years
14, 28, 60, or 90 days
Receive one month's premiums free if you pay annually. T’s and C’s apply.

24 months
14 or 28 days
Get cover up to 75% (to a maximum of $10,000) of your monthly income.
24 months
30 days
Get income protection (up to 75% of your income) without a medical test. Get a quote and you could win a $1,000 eftops Gift Card. Offer ends 10 November 2019. T&Cs apply.
5 years
30 or 90 days
Get cover up to $75% (to maximum of $12,000) of your monthly income.
5 years
2, 4, 13 weeks or 2 years
Take out a policy and get a $100 bonus gift after holding cover for 2 months. T's and C's apply. Offer ends 31 March 2020.
5 years
14, 28, 60 or 90 days
Receive up to 75% of your income (up to $10,000 per month) if you're unable to work due to serious illness or injury.
5 years
30 or 90 days
Get your first month free with Zurich Ezicover Income Protection. Cover up to $75% (to maximum of $12,000) of your monthly income.
5 years
30, 60 or 90 days

Compare up to 4 providers

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How much cover can I receive and what's the benefit period?

Advised brands

BrandMaximum monthly cover*Benefit period*
AIAMaximum of $60,000Up to 2 years to the age of 70
AMPMaximum of $60,000Up to 5 years to the age of 70
AsteronMaximum of $60,000Up to 5 years to the age of 70
BTMaximum of $60,000Up to 5 years to the age of 80
ClearViewMaximum of $40,000Up to 5 years to the age of 70
ComminsureMaximum of $30,000Up to 5 years to the age of 70
MLCMaximum of $60,000Up to 5 years to the age of 70
NobleOak$25,000Up to 2 years to the age of 65
OnePathMaximum of $10,000Up to 2 years to the age of 70
TALMaximum of $10,000Up to 5 years
ZurichMaximum of $30,000Up to 5 years to the age of 70

What should consider when selecting my benefit period?

It’s vital you consider all the factors relative to selecting the optimal benefit period for your future circumstances. Here’s a list of what you should weigh up before deciding on a benefit period for your income protection insurance:

  • You daily expenses. Consider how much it will cost to finance your ongoing daily life without an income. You must evaluate your income vs your ongoing expenses and the cost of daily necessities including education for children and potential medical expenses that may arise.
  • Any debts that you owe. You must think about whether you’ll be able to continue paying off debts such as your credit card, various loans or car repayments if you are unable to work and your income is cut off.
  • How much you are will to pay in premiums You need to look at whether you can afford a longer benefit period with a higher premium, or a shorter benefit period at a lower cost.

Longer or shorter period? How to decide

For protection against serious illness and accidents

If you’re looking at your insurance as a way to safeguard you against major accidents and illnesses that could see you permanently disabled or unable to work, a policy with a longer benefit period and a higher premium will be more beneficial to you.

For more general protection

If you are concerned about injuries or illnesses that could see you off work for a short to medium period of time, but not indefinitely, a policy with a lower premium and shorter benefit period could be for you.

When does my benefit end?

Your income protection benefit will end under the following circumstances:

  • You pass away. Your benefits will end if you pass away and your policy doesn’t include any beneficiaries.
  • Your policy expires. If your policy expires it will be cancelled. It’s up to you to keep your insurance policy up to date by paying your premiums regularly and on time.
  • You are able to return to work. If you are no longer disabled and can return to work then your benefit period will end.
  • The benefit period is over. If you reach the limitations of your benefit period post claim, you will not receive any more benefits.

It’s important to remember that your contract can be cancelled at anytime if your insurer finds you have acted outside the contractual parameters outlined in your policy. You must disclose all relevant medical information to your fund to avoid termination of your income protection insurance policy.

Is this the same as the waiting period?

No. The waiting period is the amount of time before your benefits kick in (as opposed to the length of the benefit). Longer waiting periods are generally less expensive than shorter waiting periods, as shorter waiting periods allow for you to receive monthly benefits sooner.

When does my benefit period start and how long will it go for?

Your benefit period begins as soon as your GP or medical practitioner determines that you are unable to work due to injury or sickness. From here, your claim for benefits under income protection insurance will be approved, given you have fulfilled your waiting period requirements. If you can’t work once the benefit period is over, you may be eligible for total or partial disablement benefit option.

It’s important to note, benefits generally don’t begin on the first day of your injury or illness, due to the time it takes to see your doctor and notify your fund.

Typical waiting periods

Insurers typically offer the following waiting period options under salary continuance:

  • 14 days
  • 30 days
  • 60 days
  • 90 days
  • 180 days
  • 1 year
  • 2 years

Can I tailor my benefit period for specific injuries

Certain insurance policies will offer lump-sum payouts for specific injuries and illnesses. When you are comparing policies, review the product disclosure statement (PDS) for specific circumstances or injuries that offer additional payouts.

How does it work?

A specific injury benefit is designed to help those needing immediate assistance following an injury or illness that sees them unable to work. It differs to a normal monthly income protection benefit, as it’s paid whether you’re still working or not. You’re typically paid in advance as a lump sum benefit (that isn’t part of the standard income protection benefit).

How long can I receive a specific injury benefit for?

This is dependent on the nature of your injury.

What does this include?How long can I receive the benefit for?
Common injuriesFractures, sprains, etc1-3 months
Serious injuriesLoss of a limbs or body parts, etc1-2 years
ParalysisSpinal cord injuries, paraplegiaUp to 5 years

Situations where a benefit period will end

The expiry of each specific injury benefit varies with each policy. However, there are some factors that determine when the benefit period is deemed complete:

  • Your benefit period expires
  • Your income protection policy expires
  • You die

Here is a list of injuries that are generally covered under your lump-sum specific injury benefit:

  • Paralysis
  • Loss of both hands or feet
  • Total blindness
  • Loss of two feet, plus a hand and sight in one eye
  • Loss of one leg or one arm
  • Loss of sight in one eye
  • Loss of thumb or index finger on one hand
  • Thigh fracture
  • Pelvis fracture
  • Leg fracture (below the knee and above the ankle)
  • Kneecap fracture
  • Upper arm fracture
  • Shoulder blade fracture
  • Jaw fracture
  • Forearm fracture
  • Collarbone fracture
  • Heel fracture

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