Protect your income if sick, injured or involuntarily unemployed with Suncorp Income Cover
Like other forms of income protection cover, Suncorp Income Protection Insurance plan offers a range of benefits and features to provide adequate assistance as you recover. The policy will provide an ongoing monthly benefit of up to 75% of your income up to $10,000 per month. In the event you are made redundant, you have the option to take out cover to give you 75% of your income to a maximum of $4,000 per month for a period of three months.
This review will outline the key benefits of the policy and eligibility requirements.
What does the policy cover?
- Disability Benefit. If you can’t work because you are sick or injured, Suncorp Income Protection Insurance provides an ongoing monthly benefit to replace up to 75 per cent of your income. The maximum monthly benefit amount payable is $10,000.
- Easy to apply. There are no medical or blood tests to complete when you apply for cover.
- Choice of benefit periods. You can choose to receive a Disability Benefit for a period of one or two years.
- Waiting period. Suncorp Income Protection Insurance includes a 30-day waiting period as standard. You will need to be disabled for at least 30 continuous days before your policy will pay a benefit.
- Recurring disability. If you suffer the same or a related sickness injury within six months of last receiving a monthly Disability Benefit, this will be treated as recurring disablement and you will not have to re-serve the 30-day waiting period. However, any benefit payments will be added to the remaining benefit period on your policy.
- Waiver of Premium Benefit. If you are receiving a monthly benefit for disability or redundancy, you will not have to pay any policy premiums during the benefit period.
- Automatic Indexation Benefit. In order to ensure that your level of cover remains in line with your income, Suncorp automatically increases your monthly benefit each year by 5 per cent or the indexation factor, whichever is greater. This increase will be reflected in the cost of premiums and you have the option to decline any increase if you wish.
Additional cover to consider
- Redundancy Benefit. This option allows you to receive a monthly benefit to replace your regular income if you become involuntarily unemployed. Suncorp Income Protection Insurance replaces up to 75 per cent of your income, up to a maximum of $4,000 a month, in these circumstances. The Redundancy Benefit is paid for a maximum period of three months.
- Premium Pause Benefit. Suncorp Income Protection Insurance allows you to stop paying premiums for up to three months each year you hold your policy. This is designed to help you maintain your policy if you are experiencing temporary financial hardship, but no Disability Benefit or Redundancy Benefit will be payable during this time.
When will a benefit not be paid?
Your Suncorp Income Protection Insurance disability claim will not be paid if the sickness or injury is caused by:
- Any intentional self-inflicted act
- Attempted suicide
- You working in an occupation at heights above 15 metres or underground in the mining industry
- You engaging in aviation activities other than as a fare paying passenger on a commercial flight
- You riding or driving in any race, speed or reliability trial
- You engage in mountaineering, rock climbing, abseiling or canyoning
- The use of drugs, other than drugs taken as prescribed by a medical practitioner
- Being under the influence of alcohol and driving with a blood alcohol level above the legal limit
- Any mental disorder or mental illness
- Pregnancy, miscarriage or childbirth (unless the disability continues for more than three months from the later of the date the pregnancy finishes and the disablement begins
- You engaging in any criminal activity
A Redundancy Benefit will not be paid if the loss of work was caused by:
- Your intentional self-inflicted act
- The influence of alcohol or drugs (except drugs taken as prescribed by a medical practitioner)
- Voluntary resignation, retirement or abandonment of employment
- Misconduct, dishonesty or criminal activities
- Poor performance
- Any strike or labour disturbance
- The loss, currency or maintenance of any licence or permit needed to operate your business
- The end of seasonal employment
- The end of a fixed-term contract
- Pregnancy, miscarriage or childbirth
- Elective surgery
In addition, no benefit will be paid if you were notified of impending involuntary unemployment prior to cover starting, or if your employer made a public announcement about the intention to lay off staff before cover commenced.
How much will it cost?
The cost of your Suncorp Income Protection Insurance premiums is influenced by a range of factors, including:
- Your monthly benefit. The higher the amount of income you insure, the more your premiums will be.
- Any additional options. Adding Redundancy Cover to your Income Protection policy will increase the cost of premiums.
- Your age. The older you are, the more your premiums will cost.
- Your gender. It generally costs more for men to purchase income protection cover than it does for women.
- Your smoking status. Smokers expose themselves to myriad health risks – this fact will be reflected by higher premiums.
- The benefit period. You can choose a benefit period of one or two years with Suncorp Income Protection Insurance – the longer the benefit period, the more cover will cost.
- Your occupation. Blue-collar jobs are more hazardous than white-collar occupations and therefore cost more to insure.
Conditions for your benefit to be paid
If you need to make a claim on your Suncorp Income Protection policy, you or your legal representative must phone Suncorp as soon as possible after the event giving rise to the claim. The insurer will then send out a claim pack which you must complete, sign and return.You’ll also need to supply documentation to support your claim.
For a disability claim, you must supply:
- An initial claim form. This must be completed by you and your medical practitioner, and include proof of the event or condition.
- A monthly claim form. This must be provided while a claim is ongoing and must be completed by you and your medical practitioner.
- A signed Medicare Australia authority.
- Details if any hazardous activities you engage in.
- Payslips or a statement from your employer to confirm your work hours and the terms of your employment.
For a redundancy claim, you must supply:
- An initial claim form. This must be completed by you and provide details of your involuntary unemployment.
- Proof of unemployment, for example a letter of redundancy or letter of termination of contract.
- Proof that you are actively seeking employment, for example registration with Centrelink.
- If you were self-employed, proof that your business ceased to operate due to actual insolvency, OR a letter from your accountant outlining the date and reason your business ceased to
Both disability and redundancy claims will also require you to provide:
- Proof of your identity and age
- Proof of your employment details
- Any financial statements the insurer requires to assess your claim
What is the age of eligibility for Suncorp Income Protection Insurance?
You are eligible to apply for Suncorp Income Protection Insurance if you:
- Are aged between 18 and 60 (inclusive);
- Are an Australian or New Zealand citizen or permanent resident;
- Are residing in Australia when you apply for cover;
- Are working at least 20 hours per week; and
- Receive the Suncorp Income Protection PDS in Australia
Other things you might want to know
- No medical tests. There are no medical or blood tests to take when you apply for cover. Online application takes a few minutes and you will have to answer a few simple health questions.
- Guaranteed renewable. Once your application for Suncorp Income Protection Insurance has been accepted, your policy is guaranteed renewable each year until you reach 65 years of age.
- Insurers. Suncorp Life & Superannuation Limited is the insurer of the Disability Benefit, while AAI Limited is the insurer of the Redundancy Benefit.
- Waiting period. You will need to serve a 30-day waiting period before you can start receiving a benefit.
- Changes to cover. You have the ability to change your occupation or increase or decrease your level of cover. When you apply to increase your benefit amount, you will be required to provide additional health and lifestyle information to the insurer.
- Cooling-off period. You have 30 days from the date cover commences under this policy to decide whether it is right for you. If you decide to cancel your policy during the cooling-off period, you will receive a full refund of any premiums paid.
- Monthly income. The monthly income you can insure under a Suncorp Income Protection policy refers to your total remuneration package. This includes your salary, wages, reportable fringe benefits, regular commissions, regular bonuses, overtime payments and superannuation contributions.
- Maximum benefit. The maximum benefit payable under a Suncorp Income Protection policy is $10,000 per month for a Disability Benefit, and $4,000 per month for a Redundancy Benefit.
- Concurrent benefits. If you are eligible to receive both a Disability Benefit and a Redundancy Benefit at the same time, Suncorp will pay the greater of the two benefit amounts.
- Premium payments. Suncorp Income Protection Insurance premiums can be paid fortnightly, monthly or annually from your nominated bank account or credit card.
- Large Monthly Benefit Discount. The higher the monthly benefit amount you choose, the greater the discount you can receive of the cost of your premiums:
- Benefit amount of $1,000 - $2,499: nil discount
- Benefit amount of $2,500 - $4,999: 10% discount
- Benefit amount of $5,000 - $6,999: 20% discount
- Benefit amount of $7,000 - $9,999: 25% discount
- Benefit amount of $10,000+ (including increases due to indexation: 30% discount
- Cover ends. Suncorp Income Protection cover ends when the first of the following occurs:
- You turn 65
- You cancel the policy
- You fail to pay your premiums and the insurer cancels your policy
- You retire
- You die
You can complete an online application or speak to Suncorp’s consultants to apply for income protection policy. There is a 30 day cooling off period starting from the commencement date of your policy, allowing you to assess on whether or not Suncorp income protection fulfils your protection needs. If you choose to cancel within the cooling off period, all the premiums paid will be refundable.
If you are looking for a protective insurance that provides you coverage at the time of illness or injury and inability to work, you may want to consider Suncorp income protection cover. It is a cover that is easy to understand and affordable, without sacrificing the quality of protection, allowing a greater peace of mind for you and your family.