Protect your income if you become seriously ill or injured with Medibank Income Protection cover.
With Medibank Income Protection, you can receive an ongoing benefit payment of 75% of your income to a maximum of $7, 500 per month if you can't work after suffering a serious injury or illness. You will also be eligible for additional payments for rehabilitation expenses and a lump-sum payment if you suffer a total and permanent disability.
Cover can be put in place quickly with no medical or blood tests to apply. This review will explore the key benefits of this policy the requirements to apply.
|Maximum monthly income||$7,500 (Up to 85% of your monthly income)|
|Age of entry||18-59|
|How do I apply?||Online with the insurer|
This cover might be suitable if:
- You are already a Medibank Private member and are looking for income protection
- Looking for additional coverage to add to your income protection like TPD benefits and rehabilitation benefits.
Apply carefully if:
- You have pre-existing conditions - as you'll need to declare when you apply (and wait for assessment). Otherwise, they could be excluded at claim time.
Don't get this cover if:
- You need to get covered for more than $7,500 per month because of your income.
What does Medibank Income Protection cover?
- Income benefit. Medibank Income Protection Insurance pays an ongoing monthly benefit if you suffer a disability and are unable to work. The benefit is designed to replace up to 75% of your pre-tax earnings, up to a maximum of $7,500 per month, allowing you to focus on your recovery rather than worrying about money.
- Waiting period. The waiting period is the amount of time you will have to pay before your policy starts paying a benefit. Medibank Income Protection offers a choice of two waiting periods: 30 or 90 days.
- Benefit period. You also have the option to choose how long you would like to receive a benefit: one, two or five years.
- Two types of cover. Medibank Income Protection is available in two different forms: Standard Cover and Essential Cover.
- Standard Cover is available to applicants who work at least 20 hours per week in permanent paid employment or self-employment. A benefit is paid if you suffer a disability for longer than the waiting period and are unable to work in your usual occupation. The maximum monthly benefit amount is $7,500, but this is limited to $3,500 for some occupations.
- Essential Cover is available to applicants who work less than 20 hours per week, paid or unpaid. A benefit is paid if you suffer a disability and are not able to perform certain essential day-to-day activities. The maximum monthly benefit amount is $3,500.
- Rehabilitation benefit. The rehabilitation benefit provides an additional benefit of up to 50% of the monthly amount insured for a period of up to six months. The benefit is only payable if you are receiving an income benefit and is designed to help you return to work. It is paid as a reimbursement of the rehabilitation expenses you incur. The rehabilitation benefit is not available under Essential Cover.
- Total and permanent disability benefit. Under Standard Cover, this benefit applies if you have chosen a two-year or five-year benefit period. It provides a lump sum payment at the end of the benefit period if you have been continuously receiving an income benefit for the entirety of the benefit period, you are still totally and permanently disabled and you are unlikely to ever return to work in your usual occupation. If you have a two-year benefit period, the total and permanent disability benefit payable is three times your monthly benefit amount, but this rises to five times the monthly benefit amount if you have a five-year benefit period. The total and permanent disability benefit is not available under Essential Cover.
- Death benefit. If you die while the income benefit is being paid, Medibank Income Protection provides a lump sum payment of three times the monthly sum insured.
- Member bonus. If you’re a Medibank Private member and you suffer a disability that results in an income benefit being paid, the income benefit will be increased by an extra $200 per month. This bonus payment can be used to help cover extra costs you may incur.
Conditions for benefit payment
- If you or your legal representative would like to make a claim on your Medibank Income Protection policy, you’ll need to phone or write to Medibank to notify it of your claim. The insurer will then send out a claims form that you will need to complete, sign and return. You may also need to get your treating medical practitioner to complete a form at your expense.
- It’s important that you notify the insurer of your claim as soon as possible after the event giving rise to the claim. If you do not notify Medibank within 120 days of the event, your claim could be reduced or even refused.
- Before any claim will be paid, Medibank must receive proof that the insured event occurred. The event must be confirmed by one or more medical specialists appointed by the insurer, and all relevant information (including laboratory and examination results) must also be provided.
- All income benefits are paid to you, the policy owner. Any death benefit will be paid to your personal legal representative.
Who is eligible for Medibank Income Protection?
Medibank Income Protection is available to Australian residents aged between 18 and 59 years of age. If you work at least 20 hours per week in permanent paid employment or self-employment, you can apply for Standard Cover and a maximum monthly benefit of $7,500. If you work less than 20 hours per week, paid or unpaid, you can apply for Essential Cover and a maximum monthly benefit of $3,500.
The insurer has the right to accept or decline an application for cover for any reason. Cover expires on the policy anniversary following your 65th birthday.
Understand the important exclusions
Your Medibank Income Protection claim will not be paid if it arises due to:
- An intentional or deliberate self-inflicted act
- Attempted suicide
- You taking part in a riot or civil commotion
- Chronic fatigue syndrome
- Mental disorder or illness
- Normal and uncomplicated pregnancy, childbirth or miscarriage where you are disabled for less than 90 days after the later of the date pregnancy finished or the date your disability commenced
- Cosmetic surgery, unless you are disabled for more than three months
- Any event or condition specifically excluded from your policy
Other things to know about your policy
- Insurer. Medibank Income Protection Insurance is provided by Swiss Re, part of one of the world’s leading insurance groups.
- Worldwide cover. Medibank Income Protection provides cover 24/7 anywhere in the world.
- Easy application. It’s quick and easy to apply for cover, with no medical or blood tests required.
- Premiums. The cost of your Medibank Income Protection Insurance premiums in influenced by a range of factors, including your age, the monthly amount insured, the benefit period, the waiting period, your gender, your smoking status, your overall health, your family’s medical history, your employment status and any hazardous activities you participate in.
- Premium payments. Your premiums are direct debited to the insurer at the frequency you select: fortnightly or monthly. You can pay by automatic debit from your bank account or credit card.
- Premium waiver. There are no premiums payable while you are receiving an income benefit.
- Medibank member benefits. Medibank Private members who take out a Medibank Income Protection policy can enjoy a wide range of benefits. You will receive a 10% discount on your insurance premiums and also receive an additional $200 monthly bonus benefit while a claim is being paid.
- Cover ends. Cover under your Medibank Income Protection policy ends when the first of the following occurs:
- The policy anniversary following your 65th birthday
- The policy ends
- You cancel your policy
- The insurer cancels your policy
- You cease to be an Australian resident
- You die