{"menuItems":[{"label":"Australian Super income protection: Our verdict","anchorName":"#australian-super-income-protection-our-verdict"},{"label":"Read a more detailed review on:","anchorName":"#read-a-more-detailed-review-on"},{"label":"Income protection insurance","anchorName":"#income-protection-insurance"},{"label":"Applying for cover","anchorName":"#third-block"},{"label":"Australian Super income protection pros and cons","anchorName":"#australian-super-income-protection-pros-and-cons"},{"label":"How do I make an Australian Super income protection claim?","anchorName":"#how-do-i-make-an-australian-super-income-protection-claim"},{"label":"What are some of the key exclusions of Australian Super income protection?","anchorName":"#what-are-some-of-the-key-exclusions-of-australian-super-income-protection"}]}
- The maximum amount you can apply for is $30,000 a month or 85% of your salary, whichever is lower — that's 10% more than most providers who offer income protection as a standalone policy (though 10% will be paid to your super).
- Unlike standalone policies, premiums come out of your super. This could be good if you want cover but want one less bill to come out of your bank account each month.
- If you're worried about it eating into your super, you might be better with a standalone income protection policy.
Income protection insurance
- You'll get a basic level of income protection cover if you're 25 or older when you join Australian Super (and when your super balance reaches $6,000) which is similar to other funds.
- No health information is required for cover.
- Cover is based on your age, so the amount and cost of it will change as you age.
- The benefit payment period is up to two years and comes with a 60 day waiting period – this is fairly standard among insurers. You can also choose a different benefit payment period or waiting period.
- Premiums are automatically deducted from your super account.
Note: Be sure to check the Product Disclosure Statement (PDS) for terms and conditions.
Applying for cover
- You will need to have a super account with Australian Unity.
- Income protection is available for people aged 15 to 69.
- You will be automatically provided with cover if you're over 25 and $6,000 in your super but you can apply to change or cancel your cover anytime if it doesn't suit your needs.
Australian Super income protection pros and cons
Pros
- Premiums are automatically deducted from your super.
- It gives you more cover than many other providers.
- It's convenient if you're an Australian Super customer.
Cons
- It's only available to Australian Super customers.
- You may not want to eat into your retirement savings.
To make an Australian Super income protection claim, you can call 1300 667 387 from 8:30am to 5pm AEST/AEDT weekdays.
You'll be assigned a case manager to help you through the process who will ask you some questions to see if you're able to make a claim. They'll then send you some forms to fill out to get the application process underway. It's likely that they'll need a medical report proving why you're temporarily unable to work.
Once the insurer makes its decision, they'll let you know in writing and confirm payments.
Australian Unity won't pay an insurance benefit if an illness or injury is directly or indirectly caused by:
- an intentional self-inflicted act or suicide attempt
- your service in the armed forces of any country, other than service in the Australian Armed Forces Reserve
- normal pregnancy or childbirth or assisted fertilisation techniques
- war
Read the PDS for more information on the general exclusions that apply to your policy.
I Would Like Income protection insurance if i take this out can i claim it on my tax like with any other income protection policy ??
Hi Brent,
Thanks for your inquiry.
The Australian Taxation Office (ATO) explains that you can claim the cost of premiums you pay for insurance against the loss of your income. As long as your income protection premiums relate to earning an assessable income and provided the policy is held outside of your superannuation fund, your premiums can be claimed as a tax deduction.
You can learn more about when can fringe benefits tax be claimed for income protection from our income protection and tax (ATO rules) guide.
I hope this helps.
Kind regards,
Bella
I have income protection with AUST Super, does that cover all illnesses?
Hi Jane,
Thank you for your comment.
According to Australian Super’s PDS, you won’t be covered for any illnesses or injuries you had before you got your cover and it may last for different lengths of time. Your Income Protection comes with a benefit payment period of up to two years which means benefits may be paid a maximum of two years if you’re temporarily unable to work due to illness or injury. The type of illness will be assessed by your insurer so it’s best to verify your claim with Australian Super.
Should you wish to have real-time answers to your questions, try our chat box on the lower right corner of our page.
Regards,
Jhezelyn