Looking to protect your income if ill, injured or involuntarily unemployed? Cover up to 85% of your income with NRMA Income Protection
NRMA Income Protection lets you protect your own and your families well-being by covering up to 85% of your income up to $10,000 a month in the event you are forced to take time off of work following a serious illness or injury. You have the option of tailoring your cover further with Involuntary Unemployment Cover, Kids Injury Cover, Holiday Injury Cover and Permanent Disability Cover.
This review will explore the benefits and features of the NRMA Income Protection policy and the excellent rewards on offer for applicants. NRMA Income Protection is issued by TAL Life Limited.
NRMA Income Protection is designed to help you to continue to provide for yourself and your family if you are sick or injured and unable to work. It offers the following features:
- Income benefit. You will receive a regular monthly benefit while you are off work because of sickness or injury. This benefit will replace up to 85% of your regular pre-tax income, up to $10,000 per month. You can use this benefit to cover your regular ongoing expenses and help with the cost of your recovery.
- Involuntary Unemployment Cover. Self-employed people and permanent employees who work 30 hours or more per week may also be eligible for Involuntary Unemployment Cover as part of their NRMA Income Protection policy. This offers a regular payment for up to three months if you are made involuntarily redundant from your job, or if you’re self-employed and your business becomes insolvent. This benefit amounts to up to 85 per cent of your pre-tax income, up to a maximum of $3,000 per month.
- Kids Injury Cover. This optional cover provides a lump sum payment ranging from $1,000 to $50,000 when your child suffers one of several common injuries or medical conditions. Covered conditions include a broken arm or nose, burns and major head trauma. Kids Injury Cover allows you to take time off to be by your child’s side or to cover any treatment or rehabilitation expenses not covered by Medicare or private health insurance.
- Permanent Disability Cover. For an additional premium, this cover option entitles you to a benefit of between $50,000 and $500,000 if you become permanently disabled. You can use this benefit however you wish, such as to cover the cost of long-term care, make modifications to your home or help with the loss of income.
- Holiday Injury Cover. Getting injured while you’re on holiday can be both stressful and expensive, so this optional cover offers a one-off payment when you are injured during state or school public holidays or when you’re more than 200km away from home. This one-off payment is equal to your first month’s benefit, up to a maximum of $3,000.
It’s also worth noting that if you’re not eligible for an NRMA Income Protection policy, for example because you do not work, you may be able to take out Essentials Cover. This offers many of the same advantages as income protection cover, including a benefit of up to $7,500 a month if you’re in stable employment, or up to $3,000 a month if you’re either not working or working less than 20 hours a week.Back to top
The following factors will all have an impact on the cost of your NRMA Income Protection Insurance:
- Your level of cover. Choosing a monthly benefit of $10,000 will cause your premiums to be more expensive than if you select $5,000 of cover per month.
- Any options you add to your policy. Adding an option such as Kids Injury Cover to your policy will raise the price of premiums.
- The waiting period you select. The longer your waiting period, the cheaper cover will be. NRMA Income Protection Insurance offers the choice of a waiting period of 14, 28, 60 or 90 days for sickness and injury claims.
- The benefit period you select. The benefit period is the amount of time for which you will receive a benefit while you’re off work — the shorter the period, the cheaper your insurance will be. You can choose from payout periods of six, 12 or 24 months or five years.
- When you pay your premiums. While you can pay your premiums fortnightly, monthly, quarterly or annually, paying annually entitles you to one free month of cover.
- Other discounts. You may be entitled to another discount if you already hold a policy with NRMA Insurance.
- Your occupation. If your job regularly exposes you to hazardous situations, expect to pay more for cover.
- Your age. Recover times lengthen as you age and older people are also more likely to suffer some illnesses.
- Your health. Your overall health status and medical history will be taken into account by the insurer.
- Your smoking status. Smokers are at a much higher risk of suffering a range of health problems than the rest of the population.
- Your pastimes. Do you like participating in dangerous adventure activities? If so, you can expect to pay more for cover.
If you wish to make a claim on your policy, you’ll be assigned a Personal Claims Consultant to help guide you through the process and answer any questions. As soon as you learn from your medical practitioner that you’ll be unable to work for longer than your waiting period, or if you’re made redundant, contact NRMA to be sent a claim form.
In order to receive an NRMA Insurance Income Protection benefit, you’ll have to prove your income at claim time. The benefit you receive will be calculated based on your average pre-tax income over the previous 12 months.
If you’re lodging a claim for Involuntary Unemployment, you’ll need to provide supporting evidence including:
- Proof that you are residing in Australia and actively looking for work
- A copy of a Centrelink or recruitment agency form outlining that you have registered to find employment
- Employees will need to provide a certified copy of the Separation Certificate and written advice from their employer explaining the circumstances of their redundancy or forced termination.
- Self-employed policyholders will need to provide a certified copy of a notice confirming your personal insolvency issued by the Australian Financial Security Authority (AFSA). A court order or a notice of the appointment of an insolvency administrator may also be provided.
If your claim is accepted, you will then start receiving a monthly benefit.
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You’ll need to be between 18 and 60 years of age to be eligible to apply for NRMA Income Protection Insurance. However, as long as you continue paying your premiums, cover will continue until the first policy anniversary after your 75th birthday.
Involuntary Unemployment Cover will cease following the first policy anniversary after your 65th birthday, while Sickness and Injury benefits are limited to a maximum of $3,000 per month for up to 24 months.Back to top
Your NRMA Income Protection claim will not be paid if:
- It is caused by any mental health disorder, including stress, anxiety or depression.
- It is caused by drug or alcohol abuse.
- It is a result of you being under the influence of alcohol.
- It is for cancer, stroke or heart attack in the initial six months after your cover starts.
- It arises due to normal and uncomplicated pregnancy.
- It is caused by an act of war.
- It is caused by terrorism or civil unrest in a foreign country which the Australian Government has advised against travelling to.
- It is caused by an intentional, self-inflicted act.
- It is caused by you committing, or attempting to commit, a criminal offence.
- No benefit will be paid if you are in jail or lawfully detained.
- Pre-existing medical conditions
- Dangerous occupations
- Football related injuries where you are out of action for less than 90 days
- Back related injuries where you are out of action for less than 90 days
- Cooling-off period. You have 30 days after which your insurance begins to cancel your cover in writing or over the phone. If you do, you will receive a full refund of the premiums you have paid.
- Discounts. Existing NRMA policyholders can take advantage of a 5 per cent discount for the life of their policy. Adding your spouse or partner to your policy also entitles you to a 5 per cent premium discount.
- Eligibility. To qualify for NRMA Income Protection Cover you will need to be an Australian resident aged between 18 and 60 and working more than 20 hours a week.
- Premium payments. Premiums can be paid fortnightly, monthly, quarterly or annually via direct debit or credit card.
- Insurer. NRMA Income Protection Insurance is issued by TAL Life, one of Australia’s leading specialist life insurers.