BT Income Protection Insurance

BT has been offering protection solutions for Australians since 1969 and has built a reputation on providing award-winning products tailored to a diverse range of needs.

The Income Protection range can support you if forced to take an extended period of time off of work due to illness or injury through an ongoing monthly benefit of up to 80% of your income. This means you can focus on your recovery.p

• Summary of BT Income Protection Insurance
• Pros and Cons
• Who this is and isn't for

What does BT Income Protection cover?

BT Income Protection Insurance pays up to 80% of your monthly income so you can meet daily living expenses while recuperating from an illness or injury. It is available in policy types known as BT Protection Plans, which include Income Protection, Income Protection as Superannuation and Income Protection Plus.

BT Protection Plans offer three types of income protection cover. These are Own Occupation IP, Home Duties IP and General Cover IP and you can select the type of cover that best suits your situation. The benefits offered under each include:

Own Occupation IP benefits

• Total Disability Benefit – a monthly benefit if you are totally disabled
• Partial Disability Benefit – a monthly benefit if you are partially disabled
• Elective Surgery Benefit - a monthly benefit if you are totally or partially disabled due to a transplant (where you are the donor) or cosmetic surgery
• Rehabilitation Expense Benefit - a benefit to help with approved rehabilitation costs incurred while you are totally disabled
• Rehabilitation Program Benefit - a benefit to help with approved costs of a rehabilitation program while you are totally disabled
• Return to Work Benefit - a benefit after the Rehabilitation Expense Benefit or Rehabilitation Program Benefit has been paid and you have returned to work full time for 3 months
• Recurrent Disability Benefit - waives the waiting period if you become disabled due to the same illness or injury for which a Total or Partial Disability Benefit has been paid
• Death Benefit - a benefit if you die while entitled to the payment of a Total Disability, Partial Disability, Crisis, Specified Injury or Nursing Care Benefit
• Change of Waiting Period Benefit - lets you reduce the waiting period without further health evidence if you change your employment status
• Future Insurability Benefit – lets you increase your insured monthly benefit every year without further health evidence
• IP Continuation Option – lets you continue cover at the expiry of your policy if you continue to work on a full time basis, depending on your occupation and working arrangements
• Extended Cover Benefit – lets you apply to continue your cover on limited terms under General Cover IP when your policy expires
• Counselling Benefit – reimburses you up to $5,000 for a maximum of 10 counselling sessions after a Total Disability Benefit has been paid
• Nursing Care Benefit - a benefit if you are confined to bed for more than 3 days during the waiting period
• Specified Injury Benefit - a monthly benefit if you suffer a specified injury, whether or not you are able to return to work
• Crisis Benefit - pays a monthly benefit for 6 months if you suffer a specified crisis event, whether or not you are able to return to work
• Transport Within Australia Benefit - a benefit to enable you to be transported within Australia if you become totally disabled and are confined to bed more than 100 kilometres from home
• Transport From Overseas Benefit - a benefit to help you return to Australia if you become totally disabled while overseas for more than 30 days
• Accommodation Benefit - if a Nursing Care Benefit has been paid and you are confined to bed more than 100 kilometres from home, a benefit will be paid to help with accommodation costs for an immediate family member to be with you
• Family Care Benefit - if the Total Disability Benefit is payable and you need the full time care of an immediate family member, a monthly benefit will be paid to help cover their lost income if they have to stop work to look after you
• Home Care Benefit - a monthly benefit to help cover the cost of a professional home carer if considered necessary
• Respite Care Benefit - pays for you to be placed into a respite care facility if you are totally disabled for at least 24 months, living at home with a full time family carer and are unable to perform at least two daily living activities
• Child Care Benefit - a benefit to help with approved additional child care costs while you are totally disabled
• Waiver of IP Premium - if you are paid a Total Disability Benefit, premium amounts payable during the waiting period will be refunded.

Home Duties IP benefits

• Severe Disability Benefit - a monthly benefit if you are severely disabled
• Recurrent Disability Benefit – waives the waiting period if you become disabled due to the same illness or injury for which a Severe Disability Benefit has been paid
• Death Benefit - a benefit if you die while entitled to a Severe Disability or Crisis Benefit
• Extended Cover Benefit – lets you apply to continue your cover on limited terms under General Cover IP when your policy expires
• Crisis Benefit - a monthly benefit for 6 months if you suffer a specified crisis event, whether or not you are able to carry out normal household duties.

General Cover IP benefits

• Severe Disability Benefit - pays a monthly benefit if you are severely disabled
• Recurrent Disability Benefit - waives the waiting period if you become disabled due to the same illness or injury for which a Severe Disability Benefit has been paid
• Death Benefit - a benefit if you die while entitled to a Severe Disability Benefit
• Extended Cover Benefit – lets you apply to continue your cover on limited terms under General Cover IP when you policy expires.

Conditions apply, make sure you read the product disclosure statement (PDS) before applying. Information last checked as correct in August 2020 and is subject to change at anytime.

BT Income Protection additional benefits to consider

BT Own Occupation IP also offers several optional benefits to help you tailor your cover more closely to your needs. These include;

• Accident Benefit - a benefit if you are totally disabled for a specified number of days during the waiting period due to an accidental injury
• Superannuation Contribution Option - lets you cover an additional portion of your monthly earnings to help with super contributions if you are total disabled
• Super Plus IP Benefit – lets you structure your cover with the benefits offered under an Income Protection Plus Policy over two separate policies.

How much is the policy going to cost me?

As with all forms of income protection insurance, there are a variety of factors that will influence the cost of your premiums. These include;

Conditions for benefit payment

To make a successful claim under your BT Income Protection policy, you will need to observe the following conditions of payment:

• You must notify BT in writing of your intention to claim within 30 days of your disability. If you notify BT longer than 90 days after your disability, your claim payment may be affected
• You must lodge a claim along with required supporting documentation such as proof of age and financial earnings within 60 days of your disability
• You must provide satisfactory evidence regarding your disability including doctors’ reports or certificates
• You must agree to undergo medical tests or examinations if requested.

Who is eligible for BT Income Protection?

You will need to fall within a minimum and maximum age range to be eligible for BT Income Protection Insurance.

For Own Occupation IP, the entry age is 17 and the expiry age will depend on your chosen benefit period. For policies with a benefit period to age 55, the expiry age is 55, for those with benefit periods of 2 years, 5 years and to age 65, it is 65 and for those with a benefit period to age 70, it is 70.

For Home Duties IP, the entry age is 17 and the expiry age is 65.

And for General Cover IP, the entry age is 17 and the expiry age again depends on the benefit period selected. For policies with benefit periods of 2 years, 5 years and to age 65, the expiry age is 65 and for those with a benefit period to age 80, the expiry age is 80.

Exclusions to be aware of

As with any insurance, certain conditions and exclusions apply and in the case of BT Income Protection Insurance, a benefit will not be paid if your death or disability is caused directly or indirectly by:

• an intentional self-inflicted act or attempted suicide
• an accident while you are under the influence of alcohol or non-prescribed drugs
• an act of war (whether declared or not), except when you die on war service
• engaging in any sport, pastime or occupation not normally covered at standard rates
• any condition that you knew about before applying for cover.

Other important policy features to be aware of

Some other things to be aware of regarding your BT Income Protection Insurance include;

• Cooling off period – you have a 28-day cooling off period to decide whether your policy meets your expectations, after which no refund can be provided.
• Premium structures – stepped premiums are calculated every year and change according to your age and the sum insured. Level premiums are calculated according to your age at the commencement of the policy and do not increase during the life of the policy.
• Multi-policy discount – if you are covered by more than one BT Protection Plan, you will receive a multi-policy premium discount of 5%, excluding policy fee and stamp duty.
• Loyalty Benefit - after you have held your BT Income Protection policy for 3 years, a death benefit of $50,000 will be added to your policy at no extra charge.

What if you're self-employed? Consider business expenses insurance

If you're self-employed you might want to consider looking at BT's Business Overheads insurance. If you were to unable to work due to an injury or illness, Business Overheads insurance can provide your company with the steady cash flow it needs to keep up with the day-to-day expenses during your absence.

Business Overheads insurance from BT covers you for up to one years and helps you pay ongoing expenses such as:

• Utility bills
• Rent
• Insurance premiums

Awards received by BT

• 2014 Best Fund Manager Award and Advance Asset Management Award - Money Magazine

• 2014 Advance Balanced Multi-Blend Fund Award - Money Magazine

• 2014 Advance Australian Shares Multi-Blend Fund Award, Advance Balanced Multi-Blend Fund Award, Advance Growth Multi-Blend Fund Award and Advance High Growth Multi-Blend Fund Award - Lonsec

• 2013 Best Fund Manager Award and Advance Asset Management Award - Money Magazine

• 2012 Best Fund Manager Award and Advance Asset Management Award - Money Magazine

Ready to make an enquiry for BT Income Protection?

If you want to learn more about any of the policies available from BT or are ready to receive a quote for cover, you can make a secure enquiry by entering your details in the form above. An insurance consultant will be in touch to explain any of the policy features you are unsure of and give you a quote based on your details. This service is provided free of charge and there is absolutely no obligation to sign up for cover.