InsuranceLine Income Protection Insurance Review

Benefits of the InsuranceLine Income Protection Insurance policy

Whether you love or hate your job, whether you jump out of bed in the morning ready for the day, or you’re on the edge of your seat at 4.58pm watching the clock, you go into work day after day and you and your family rely heavily on the income you bring home, to maintain and build the lifestyle you want.

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Therefore, no matter what your industry, job title or income level, income protection insurance can be valuable in offering security to your family, knowing that you will still be able to provide for them even if you’re unable to work.

Features of the InsuranceLine Income Protection Policy

Income protection insurance from InsuranceLine allows you to secure your income so you know it will be there if you were sick, injured or you were made redundant. You can choose the options and benefits which suit your needs and your family’s financial situation, and you can choose a benefit of up to 85% of your regular income when you make a claim, which can be up to $10,000 for up to five years.

InsuranceLine gives you plenty of time and financial support to get back on your feet, with the following features:

  • Up to 85% of your regular income benefit: Your income protection benefit from Insurance Line is paid to you as a monthly income, which is a percentage of your regular income. While you won’t have exactly the same amount coming in each month, you can use the significant portion of your income benefit any way you choose, whether you need to use it for medical bills, mortgage repayments, utility bills or basic every day expenses like groceries.
  • Cover for illness and injury: Insurance Line income protection cover will pay a benefit if you become ill or injured and unable to work. This means you are covered for many common injuries and illnesses such as broken bones and fractures; however, you won’t be covered for mental illness, alcohol-related illness or injury, injuries which are self inflicted or injuries caused by an act of war.
  • Easy application made more affordable: You can apply quickly and easily for income protection with InsuranceLine online or over the phone. However, if you want to take just a few more minutes to answer some additional questions about your health and lifestyle, you can save even more on your premiums, and you open up new features on your policy.
  • In case it happens to you: It is easy to put off taking out life insurance like income protection, because you can put it into the ‘that only happens to other people’ basket. However, according to the Interim Report from the Institute of Actuaries of Australia, one in three Australians will be disabled for more than three months in their working lives. This startling statistic means that you might just be that ‘other person’ and if the worst does happen, you want to feel secure in the knowledge that you did everything you could to protect your family by protecting your income.
  • Choose your waiting period and benefit period: InsuranceLine offers generous benefit periods of up to five years, giving you plenty of time to get back on your feet. Plus you can choose a waiting period of as little as 14 days, so you don’t have to risk depleting your savings or other investments if you’re unable to work.
  • Tax deductible premiums: Not only are the InsuranceLine premiums affordable to begin with, they are also tax deductible at the end of the financial year. This means your income protection insurance can help contribute to you getting a bigger refund back at tax time, so you don’t have to make a claim with InsuranceLine to start benefiting from your cover.

InsuranceLine Time Saver vs Rate Saver

InsuranceLine income protection insurance application is a fast and easy one, allowing you to secure cover without any more excuses. However, you also have the option to take a few more minutes to answer some additional questions, and tailor your cover with additional features.

Features of InsuranceLine Time Saver Income Protection include:

  • A benefit of up to 85% of your regular income.
  • A monthly benefit of up to $7,500.
  • Your choice of six, 12 or 24 month waiting period.

Whereas if you answer a few health and lifestyle questions, InsuranceLine is able to offer you the Income Protection Plus Rate Saver which includes:

  • A benefit of up to 85% of your regular income.
  • A monthly benefit of up to $10,000.
  • A waiting period of six months, 12 months, 24 months or five years.
Sickness and Injury CoverRate SaverTime Saver
Maximum monthly cover amount$10,000$7,500
Maximum % of income covered85%85%
Benefit Period6 months, 12 months, 2 years or 5 years6 months, 1 year
Waiting Period14, 28, 60 or 90 days28 days
Proof of incomeRequiredRequired for cover exceeding $3,000
Cover limit after age 65$3,000 per month$3,000 per month
Expiry age6565
Involuntary Unemployment CoverRate SaverTime Saver
Maximum monthly cover amount$3,000$3,000
Benefit Period3 months3 months
Waiting Period28 days28 days
Expiry age6565
Cover OptionRate SaverTime Saver
Permanent Disability Cover$50,000 - $500,000 lump sum benefit$50,000 - $500,000 lump sum benefit (pre-existing medical conditions are excluded
Holiday Injury BenefitUp to $3,000 additional cover if insured is injured on holidays or more than 200km from home or on a school or public holidayUp to $3,000 additional cover if insured is injured on holidays or more than 200km from home or on a school or public holiday
Kids Injury CoverBenefit payment if your child is injuredBenefit payment if your child is injured

Applying for Insurance Line Income Protection

  • Eligibility: Insurance Line’s Income Protection Plus Cover is available to Australian residents between 18 and 60 years of age. You can take out cover over the phone or send a request for more information through the Insurance Line website. You can phone 1300 880 750 between 8am and 8pm Monday to Friday, or visit insuranceline.com.au to find out more.
  • Duty of Disclosure: However, before you apply to buy an insurance plan from Insurance Line, you’ll need to satisfy your duty of disclosure under the Insurance Contracts Act 1984. It’s your responsibility to answer any questions that the insurer asks you honestly and completely, plus to disclose any information which may affect the company’s decision on whether or not to grant you cover. Failure to do so could result in your future claims being reduced or rejected, or perhaps even the cancellation of your policy.
  • Cooling off period: A 30-day cooling-off period applies to Income Protection Plus. Often described as a money back guarantee this gives you 30 days after you sign up for a policy in which you can assess whether the policy truly meets your needs and if you would still like to take out cover. If you decide to cancel your policy during this time, you’ll receive a full refund of any premiums you have paid.

InsuranceLine Involuntary Unemployment Cover

In these uncertain economic times, many Australians unexpectedly find themselves suddenly out of work. Coping with such an unexpected setback from a financial point of view can be quite difficult, which is why Insurance Line offers Involuntary Unemployment Cover.

Providing an extra financial safety net when you unexpectedly find yourself out of work, Involuntary Unemployment Cover can offer an ongoing benefit payment for up to three months. This can help you if you are looking for new employment, if you’re ever made redundant from your full-time job, or if you are self employed and your business is declared insolvent.

You’ll need to be out of work for more than 28 days to make a claim under this policy, and Involuntary Unemployment Cover only begins once you’ve been on your Income Protection Plus plan for at least six months. Any involuntary unemployment which occurs before such a time is excluded from your cover. You’ll also need to have been continuously employed in a full-time capacity for the six months leading up to your claim.

There are certain other circumstances when involuntary unemployment benefits will not be paid. These include:

  • Where your employer has given notice (including mainstream media announcements) prior to the commencement of the benefit that the company may be making people redundant or may suspend or cease trade.
  • If your unemployment is a result of sickness or injury.
  • If your unemployment is due to voluntary redundancy, resignation or retirement.
  • Where your employer terminates your employment during a probationary period.
  • Where your unemployment is a result of you becoming personally insolvent.
  • Where your unemployment is a result of your business being unable to pay its debts.
  • Where your involuntary unemployment is caused by your misconduct, dishonesty or involvement in illegal activities, or by the use of alcohol or illegal drugs.
  • If you refuse an offer of reasonable alternative employment by your employer.
  • Your unemployment is a result of poor performance of your occupation.

InsuranceLine Income Protection Insurance General Exclusions

Just as you would find on any other insurance policy, Insurance Line’s Income Protection Plus Cover contains a list of exclusions. Under this type of policy, your claim will not be paid if:

  • You were not able to, or were only partially able to, perform your regular activities before your policy started.
  • Your claim is caused by any mental health disorder. This includes anxiety disorders, depression, stress disorders, eating disorders, drug and alcohol abuse, psychosomatic disorders and more.
  • Your claim is for any disorder related to fatigue, including chronic fatigue syndrome.
  • It is for a drug or alcohol related sickness or injury.
  • It is for cancer, stroke or heart attack at any time within six months of your policy starting.
  • It is for normal and uncomplicated pregnancy.
  • It relates to war, terrorism or civil unrest.
  • It is a result of any intentional act of self-harm.
  • Your claim is for a sickness or injury that occurs as a result of or during committing a criminal offence.
  • It is for any other exclusion which Insurance Line has agreed with you first.
  • It is for any pre-existing medical condition that has affected you in the five years prior to taking out cover, whether it was diagnosed or not. Note that certain conditions, such as having a Body Mass
  • Index above a certain limit or having total blood cholesterol above a certain limit are classified as pre-existing conditions.
  • It is for a sickness or injury relating to aviation, other than as a paying passenger on a commercial flight.
  • It is for involving yourself in a dangerous occupation or pastime.
  • You work or engage in a lifestyle activity which involves explosives, weapons, heights above 20 metres, depths below 30 metres underground or underwater or speeds above 130 km per hour.
  • Football-related injuries that result in you being out of work for less than 90 days.
  • Back injuries that result in you being out of work for less than 90 days.

InsuranceLine Income Protection Premiums

The premium you will have to pay for your Insurance Line Income Protection Plus Cover will be shown on your policy schedule. Your premiums will increase each year as you grow older, and will also rise in line with any increase in benefits. Similarly, if your benefits decrease your premium will be altered accordingly. Other factors, such as your occupation, lifestyle and health history will also be taken into account by Insurance Line when determining the amount of your premiums.

You are free to change the frequency of your premium payments at any time and they can be done via credit card or direct debit. However, your premium will be waived if you are sick, injured or involuntarily unemployed and receiving a relevant benefit.

Although your premium rate is not guaranteed, you’ll never be singled out for a premium increase once your cover has taken effect. Any premium increase will be introduced across the board for all policyholders and you will receive 30 days’ written notice.

If you do not pay your premium when it is due or if it cannot be deducted from your account, then:

  • If it’s your first premium, your policy will not take effect.
  • If it’s any premium other than your first, Insurance Line will allow you 30 days from the due date to make this payment.

If Insurance Line does then not receive payment by this time, you’ll be sent a notice informing you that your policy will be cancelled if your premium is not paid by the due date shown in the notice.

Sickness, Injury and Involuntary Unemployment premiums are generally tax-deductible, which can help make the cost of cover much more manageable. However, remember that any benefits you receive will be assessable for taxation purposes.

In terms of Permanent Disability and Kids Injury Cover, the premiums you pay will typically not be tax deductible, while the benefits you receive will not be assessed when you file your income tax return.

InsuranceLine Income Protection Insurance Claims

  • Claim as soon as possible: Because making a claim under your income protection policy can be a very stressful time, Insurance Line aims to keep the claims process as simple and straightforward as possible. If you need to make a claim under your policy, you need to contact Insurance Line as soon as possible after you discover you will be unable to return to work for longer than your Income Protection Plus waiting period.
  • Supporting evidence: Insurance Line will then provide a claim form which you or your legal representative will then need to complete and then send back to the company. You’ll also need to provide any other information which the company may require to process your claim, such as proof of the condition or your involuntary unemployment, your income or any other documents which Insurance Line requires in order to validate your claim.
  • Monthly claims progress form: Every month that you are unable to return to work, in order to continue to qualify for a benefit you’ll need to complete progress claim forms and send them to Insurance Line. Remember that you’ll have to bear any standard cost involved in providing the appropriate documentation or information to Insurance Line.
  • Additional evidence: The supporting documentation and information you will need to supply may differ depending on the claim. However, all claims will require a certified copy of the proof of age of the life insured and the completion of a progress claim form each month. Other information you could have to provide may include evidence from a medical practitioner, evidence of the date and location where an event leading to an injury occurred, and proof of income for the previous 12 months.

Once Insurance Line has received acceptable proof, your claim will be paid. However, in order to continue receiving a benefit you will need to be under the care of a medical practitioner and following their advice.

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