NIB Income Protection

Information verified correct on September 23rd, 2016

Compare Income Protection cover available from NIB and keep your income secure from illness or injury

No income means no groceries, no fuel in the car and no money to pay the bills and if you have a mortgage, it could even mean losing your home. Which is why income protection insurance is not just a good idea, it’s actually a necessity.

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NIB Income Protection Insurance pays up to 85% of your gross income if you are unable to work for a certain period of time due to accident or illness. It’s a safety net that ensures you can continue to provide for your family and focus on getting better, without having to worry about whether you can pay the next bill.

What does the policy cover?

NIB Income Protection Insurance is not like other income protection policies. Because everyone’s circumstances are different, NIB offers different types and levels of cover, depending on your needs.

What all NIB policies have in common however is:

  • Up to 30% off your premiums if you’re in good health. All you have to do is answer a few simple questions and you could really save.
  • Premiums that are tailored to match the particular kind of job you have, making cover affordable for everyone.
  • Shorter waiting periods before you are able to claim. These can be as little as 14 days, unlike many other insurers, who often have waiting periods of up to 90 days.
  • Up to 85% of your gross income is paid to you, up to a maximum of $10,000 a month.

NIB Income Protection Insurance can be tailored to suit your budget and your particular needs. For instance, you can choose between waiting periods of 14 and 28 days. You can also choose the length of the payout period, with the option of 6, 12 or 24 months.

If you have accrued sick pay or personal savings that could tide you over in the initial period of your illness, opting for the longer waiting period can reduce your premiums, just as choosing a shorter payout period will.

Basic Cover Option

NIB Income Protection Insurance is so flexible you can even get basic cover if you don’t qualify for normal income protection, due to your health, lifestyle or occupation. Basic cover is also ideal for students, stay-at-home parents or the self-employed, as it allows you to protect your income for up to $7,500 a month if you’re working and up to $3,000 a month if you work less than 20 hours a week.

The flexibility of NIB Income Protection Insurance allows you to protect your income from the unexpected by choosing a policy that exactly suits your budget and your way of life. It’s peace of mind that everyone can afford.

NIB Income Protection Insurance additional options to consider

As well as enjoying the universal benefits of NIB Income Protection, such as shorter waiting times and a choice of payout periods, you also have the option of extending your cover to include

Involuntary Unemployment and Permanent Disability cover

  • Involuntary Unemployment cover protects your income if you are made redundant by your employer through no fault of your own, or if you are a small business owner and your business becomes insolvent.
  • Involuntary Unemployment cover provides cover for up to 85% of your gross income, to a maximum amount of $3,000 a month for 3 months, giving you the breathing space you need to get back on your feet again.
  • To be eligible for this optional cover, you need to be working full time for more than 30 hours a week and to have been continuously employed for over six months prior to your claim.

Total and Permanent Disability Insurance

As the name suggests, Permanent Disability cover provides you with additional protection in the event that your injury or illness leaves you permanently disabled. You can select a benefit amount anywhere between $50,000 and $500,000, which you will be eligible to claim six months after taking out this cover.

How much will it cost?

Whether or not you choose to include Involuntary Unemployment or Permanent Disability cover, the amount of your overall premium will be based on a range of factors.
These include;

  • How old you are
  • What gender you are
  • How healthy you are
  • How you live
  • What your occupation is
  • The options you choose in regard to waiting times and payout periods

The amount of your premium will also depend on how often you choose to pay it, with the option of fortnightly, monthly, quarterly or annual payments. It’s worth noting that if you choose to pay annually, NIB offers an extra incentive, with one month’s free cover included every year.

At the end of the day, how much you pay for NIB Income Protection Insurance is entirely up to you, as you can select a level of cover that exactly suits your budget and your needs. It’s flexible cover that puts income protection within everyone’s reach, no matter who they are.

Conditions for benefit payment

NIB will make claim payments under your Income Protection Insurance as long as the following conditions are met:

  • You must be continuously incapacitated for periods of longer than 30 days immediately after you receive an accidental injury.
  • Payments are made monthly in arrears and only if your policy is valid and your premiums are up to date.
  • You must be under the care of a registered medical practitioner, who must certify on a regular basis that you are unable to perform two or more regular daily activities as a result of your accidental injury.

NIB will not make claim payments under your Income Protection Insurance:

  • If you are deemed to be no longer seriously injured
  • If you have already claimed under another policy
  • If you are seriously incapacitated as a result of an injury that occurred before you were accepted for coverage
  • If your injury was intentionally self-inflicted
  • If your injury was incurred during an unlawful act
  • If it was incurred while you were under the influence of drugs or alcohol
  • If it was incurred while you were participating in any form of aviation, other than as a commercial airline passenger
  • If it was incurred at a height of more than 20 metres, a depth of more than 30 metres, or a speed of more than 130 kph
  • If it was incurred while you were knowingly undertaking a dangerous activity for personal reward or regular payment.

Other things about your policy worth knowing

As well as the general terms and conditions described above, there are several other things to be aware of when you take out a NIB Income Protection Insurance Policy. These include:

  • Inflation protection – NIB inflation-proofs your policy by raising the cost of your premium and the amount of benefit paid every year by the Indexation Factor or by 3%, whichever is greater. You can choose to opt out of this service by notifying NIB in writing.
  • Cooling off period – if you change your mind about your income protection policy, you can take advantage of the cooling off period and cancel it within 30 days of receiving your policy schedule. NIB will refund any premiums paid, unless a benefit has been paid in the meantime.
  • Protected policy – because Involuntary Unemployment cover is protected under the Financial Claims Scheme, you may be entitled to payment under that scheme, subject to eligibility.
  • No premiums – you will not be required to pay any premiums towards your NIB Income Protection cover while you are being paid a benefit for your illness, injury or involuntary unemployment.
  • Tax implications – as a general rule, premiums paid for NIB Income Protection cover are tax deductible and benefits received are taxable. While premiums paid for optional Permanent Disability cover are not tax deductible, benefits received are tax free.
  • Payment - premiums for NIB Income Protection Insurance are due on a day chosen by you either fortnightly, monthly, quarterly or annually and payment can be made by direct debit or credit card.
  • Premium increase – the cost of your NIB Income Protection Insurance premium may increase from year to year as you get older, as standard premium rates usually increase with age.
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