
Get exclusive money-saving offers and guides
Straight to your inbox
Updated
We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!
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.
Insurers typically offer the following benefit period options:
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.
An adviser can help you find cover from trusted life insurance brands.
Brand | Maximum monthly cover* | Benefit period* |
---|---|---|
AIA | Maximum of $60,000 | Up to 2 years to the age of 70 |
AMP | Maximum of $60,000 | Up to 5 years to the age of 70 |
Asteron | Maximum of $60,000 | Up to 5 years to the age of 70 |
BT | Maximum of $60,000 | Up to 5 years to the age of 80 |
ClearView | Maximum of $40,000 | Up to 5 years to the age of 70 |
Comminsure | Maximum of $30,000 | Up to 5 years to the age of 70 |
MLC | Maximum of $60,000 | Up to 5 years to the age of 70 |
NobleOak | $25,000 | Up to 2 years to the age of 65 |
OnePath | Maximum of $10,000 | Up to 2 years to the age of 70 |
TAL | Maximum of $10,000 | Up to 5 years |
Virgin | Maximum of $10,000 | Up to 5 years to the age of 65 |
Zurich | Maximum of $30,000 | Up to 5 years to the age of 70 |
Brands | Maximum monthly cover* | Benefit period* |
---|---|---|
ANZ | Maximum of $10,000 | Up to 5 years |
Nobleoak | $25,000 | Up to 2 years to the age of 65 |
Virgin | Maximum of $10,000 | Up to 5 years to the age of 65 |
Zurich | Maximum of $30,000 | Up to 5 years to the age of 70 |
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:
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.
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.
Your income protection benefit will end under the following circumstances:
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.
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.
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.
Insurers typically offer the following waiting period options under salary continuance:
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.
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).
This is dependent on the nature of your injury.
What does this include? | How long can I receive the benefit for? | |
---|---|---|
Common injuries | Fractures, sprains, etc | 1-3 months |
Serious injuries | Loss of a limbs or body parts, etc | 1-2 years |
Paralysis | Spinal cord injuries, paraplegia | Up to 5 years |
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:
Here is a list of injuries that are generally covered under your lump-sum specific injury benefit:
Find out how much a colonoscopy costs in Australia and how you can avoid paying heaps.
Read these top tips to help you launch a successful fitness company.
Love working with numbers and helping businesses? Here’s how to start a financial auditing firm.
Learn how you can get started on your journey to a profitable career as a mechanic.
Everything you need to know about the cost of trauma insurance.
Find out why you need income protection if you’re a single parent.
Find out more about the costs of egg freezing and how to get cover.
It’s possible to get life insurance if you or a loved one has been diagnosed with dementia and Alzheimer's. Find out how.
Find out how students can benefit from income protection insurance.