How to claim income protection

It's really easy to claim income protection insurance – you just need to get in touch with your insurer, send in a few forms stating why you're too sick or injured to work and then simply wait to hear back.

How to claim income protection

Contact your employer and insurer

You should do this as soon as you fall ill or are injured and can't work. Your insurer will then send you the paperwork you need to submit the claim.

Fill out the claim form

You will need to fill out a salary continuance report with a statement from your GP, a tax file number declaration form, an income replacement employer report, information regarding your leave and pay history for the previous 12 months and certified proof of age, such as your driver's licence, birth certificate or passport.

Wait to hear back from your insurer

Send the completed documentation to your insurer by mail or email. Your claim will be assessed once the waiting period you selected when you took out the policy ends (either 30, 60, 90, 120 or 180 days).

When does an income protection claim pay out?

In order for an income protection claim to be accepted, you must meet either of the following criteria:

• Total disability. Your insurer will deem you totally disabled if an illness or injury prevents you from being able to perform one or more important duties of your own occupation (duties that involve 20% or more of your job) and you're under regular care and advice of your GP.
• Partial disability. This is when, because of your illness or injury, you're unable to perform one or more important duties of your own occupation to the same extent as you previously were. To be eligible, you need to be receiving regular care and advice from your GP.

Income protection calculator: How much cover you could get

Questions you'll be asked during the income protection claims process

You have a duty of disclosure to be truthful to your insurer both when applying for cover and when lodging an income protection claim. These are the typical questions your insurer will ask you:

• Has your GP confirmed that you are likely to be off work for longer than the waiting period?
• Have you experienced this or a related condition in the past?
• What are the duties you perform in your occupation and the approximate time spent performing each?
• Is it your intention to return to work with the same employer after you recover?

After a claim is processed

What happens if your income protection claim is accepted?

If your insurer accepts your claim, you'll be paid a monthly benefit worth up to 75% of your income into your bank account. The payment will be 1 month in arrears from the time your waiting period ends, for example, after 60 days if your waiting period is 30 days.

Your claim will be reviewed monthly to determine your ongoing eligibility. You'll be required to provide:

• A doctor’s report every month
• Undertake periodic independent medical examinations (only if requested by your insurer)

What happens if your income protection claim is rejected?

If your claim is rejected and you don't think it should have been, you can:

• Request a review of your case by a third party through your insurer's internal dispute resolution team.
• If it's still rejected and you're not satisfied with the outcome, you can contact the Australian Financial Complaints Authority (AFCA) or the Superannuation Complaints Tribunal (SCT) if your policy is held inside your superannuation.

Compare income protection policies and get a quote today

1 - 6 of 6

Name	Product	Maximum Monthly Benefit	Maximum % of Income Covered	Maximum Benefit Period	Minimum Entry Age	Sum Insured
TAL Accelerated Protection Income Protection Finder Award		$30,000	Up to 70%	Up to Age 65	18	$1,305 million	Get up to 70% of your income covered with flexible short and long term benefit periods.	Get quote View details	Compare	loading Fetching your data...
AAMI Income Protection		$10,000	Up to 75%	Up to 5 years	18	$222 million	Get quote View details	Compare	loading Fetching your data...
NobleOak Income Protection Finder Award		$30,000	Up to 70%	Up to Age 65	18	$65 million	Get one month free for a limited time - apply by 21 December 2023. With NobleOak, you can lock in a policy with a benefit period covering you up to the age of 65. Cover limits may go as high as $30,000.	Get quote View details	Compare	loading Fetching your data...
Medibank Income Protection		$12,500	Up to 70%	Up to 5 years	18	Data not available	If you’re a Medibank health member, you can enjoy a 10% discount on your premiums each year.	Get quote View details	Compare	loading Fetching your data...
ahm Income Protection		$10,000	Up to 70%	Up to 5 years	18	Data not available	Get quote View details	Compare	loading Fetching your data...
Insuranceline Income Protection		$10,000	Up to 75%	Up to 5 years	18	$222 million	Take out a new Insuranceline Income Protection policy and get a $100 eGift card after your first 4 months of cover. T&Cs apply. Ends 31 March 2024.	Get quote View details	Compare	loading Fetching your data...

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Frequently asked questions about income protection claims

• How much does an income protection claim pay out?

  Typically, income protection insurance provides you with a monthly income stream of up to 75% of your original salary. The amount you receive will depend on whether you are deemed totally or partially disabled (partial disablement may only pay a portion of your monthly income) and whether your policy is an indemnity or agreed value policy.

• How do I claim income protection on tax?

  Income protection payments are taxed as if they were normal income. When you lodge your claim, you will be asked to provide your tax file number so your income protection payments can be taxed on a pay as you go (PAYG) basis. If you don't provide your tax file number, your insurer will be required by law to withhold tax from your benefit payments at the highest marginal tax rate, rather than at the lower personal tax rate.

  However, if you held a policy outside of superannuation, your premium payments are tax deductible, so you can claim a portion of what you've paid back when you submit your tax return.

• Can you still receive WorkCover payments or Centrelink benefits?

  Yes, but the monthly benefit you receive from your income protection claim will be reduced accordingly if you're also receiving WorkCover or Centrelink benefits because of the injury or illness.

• How long does an income protection claim take?

  It typically takes 2 weeks to 3 months for an income protection claim to begin paying you. The length of time depends on the waiting period you select when you take out a policy and whether or not your insurer requires more information before it accepts your claim.

• When can't you make an income protection claim

  You can't make an income protection claim if you're let go from your job, terminated or made redundant. Income protection is only designed to assist you when an illness or injury prevents you from doing your job.