nib Income Protection
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 can be just a necessity.
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.
|Maximum monthly income||$10,000 (Up to 85% of your monthly income)|
|Age of entry||18-65|
|How do I apply?||Online with the insurer|
This cover might be suitable if:
- You want a higher percentage of your monthly income covered
- You want to add on redundancy cover to regular (injury and illness) income protection
- You want to add-on some permanent disability insurance cover
- You want a shorter waiting period
Apply carefully if:
- You have pre-existing medical conditions. You may be offered Basics Cover which may not cover you if it's a result of your pre-existing medical condition.
Don't get this cover if:
- You don't mind taking out a longer waiting period (e.g. 90 days on other policies) to save money.
Based on nib Income Protection policy. Information last checked on April 2019. Always consult the Product Disclosure Statement (PDS).
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 may 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.
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 full time 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.
nib Income Protection Insurance additional options to consider
As well as enjoying the benefits of nib Income Protection, such as choosing shorter waiting times and a choice of payout periods, you also have the option of extending your cover to include the following features:
Involuntary Unemployment and Permanent Disability cover
- Involuntary Unemployment cover protects your income if you are made involuntarily redundant from a permanent job or you’re self-employed.
- Involuntary Unemployment cover provides cover for up to 85% of your gross income, to a maximum amount of $3,000 a month for up to three 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 on a permanent basis for 30 hours or more and to have been continuously employed for over six months prior to your claim.
Permanent Disability cover
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. There is a six month waiting period on this option.
How much will these optional covers cost?
Whether or not you choose to include Involuntary Unemployment or Permanent Disability cover, the amount of your overall premium charged will be based on a range of factors.
- Your age
- Your gender
- How healthy you are
- Your lifestyle
- Your occupation
- 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 up front and 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 suits your budget and your needs. It’s flexible cover that puts income protection within everyone’s reach, no matter who they are.
nib will not make claim payments under your Income Protection Insurance:
- If you return to work
- If you have already claimed under a similar policy the payout amount is adjusted
- If you are seriously incapacitated as a result of an injury that occurred before you were accepted for coverage
- For mental health conditions or any treatment complications
- For normal and uncomplicated pregnancy
- For cancer, stroke or heart attack during the first 6 months after your policy starts
- If your injury was intentionally self-inflicted
- If your injury was incurred during an unlawful act
- If your injury was incurred while you were under the influence of drugs or alcohol
- If your injury was incurred while you were participating in any form of aviation, other than as a commercial airline passenger
- If your injury 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 your injury was incurred while you were knowingly undertaking a dangerous activity for personal reward or regular payment
For a full list of conditions and cover details, refer to the PDS (Product Disclosure Statement).
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 an 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, if you are entitled to claim under this cover 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 will increase from year to year as you get older.
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