Compare Income Protection policies from Zurich and receive a secure quote
Zurich’s Income Replacement policy provides income if you’re incapacitated by illness or injury. This income can be used to provide for your family, pay bills and debts, and continue to maintain your investment strategies. Zurich offers a range of income protection policies to suit the cover needs of a variety of applicants. This review will provide an overview of the built-in and optional benefits available and other important details of the cover.
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- Additional options for Zurich’s income protection insurance
- How much will Zurich’s income protection cost?
- Conditions for benefit payment
- What is the age of eligibility for Zurich’s income protection policy?
- Exclusions to be aware of
- What you need to know about Zurich’s income protection policy
- Awards received by Zurich
What does the ZuriCh Income Protection Policy Cover?
Three levels of cover are available for this policy: - Standard, Comprehensive and Premier. They all offer the following benefits:
- Income benefit. You’ll receive a monthly benefit of up to 75 per cent of your pre-tax income if you are unable to work due to illness or injury or only able to work at a reduced capacity. Benefits will be paid after you have served a waiting period.
- Specified injury benefit. If you suffer a specified injury, such as quadriplegia or loss of limbs, you’ll be eligible to receive a benefit immediately (without having to serve a waiting period).
- Rehabilitation benefits. This feature ensures that you will be reimbursed for workplace modification costs and rehabilitation costs to help you get back to work. A rehabilitation bonus is also paid if you participate in a pre-approved rehab program.
- Funeral benefit. A lump sum payment equal to three times the insured monthly benefit will be provided to help your family cover your funeral costs if you die.
- Flexible cover benefit. If your income reduces while you are pregnant or following the birth or adoption of a child, your insured monthly benefit can be reduced and then reinstated (inside two years) without you having to undergo a health assessment.
- Waiver of premium. Your premiums will be waived if Zurich is paying a claim.
- Other built-in benefits. These include interim cover while your application is being assessed, inflation protection, recurrent disability and concurrent disability benefits, and a premium holiday to help ease your financial burden.
Comprehensive and Premier policies also offer these benefits:
- Confined-to-bed benefit. You’ll receive an immediate benefit if you are confined to bed due to illness or injury for more than two consecutive days and must rely on full-time care of a nurse.
- Special care benefit. These benefits help provide financial support if a relative stops work to care for you, if you hire an attendant to care for you, or to cover accommodation or relocation costs.
Premier policies include the following additional benefits:
- Family support benefit. If you die while you are receiving a monthly benefit, your spouse will continue to receive the benefit for 12 months after you die.
- Trauma benefit. If you suffer from a specific trauma condition, a lump sum benefit equal to six times the monthly insured benefit will be paid.
- Future insurability. Your insured monthly benefit can be increased by up to 15 per cent every policy anniversary (until age 55) without the need for you to undergo any further health assessment.
|Outside of super||Super ownership|
|Specified injury benefit||Yes||Yes||Yes||No||No|
|Flexible cover benefit||Yes||Yes||Yes||No||No|
|Waiver of premium||Yes||Yes||Yes||Yes||Yes|
|Confined to bed benefit||No||Yes||Yes||No||Yes|
|Special care benefit||No||Yes||Yes||No||No|
|Family support benefit||No||No||Yes||No||No|
|Trauma benefit (waiting periods 90 days or less)||No||No||Yes||No||No|
These options are available with all levels of cover for an extra cost:
- Increasing claims option. Your income benefit will increase quarterly in line with the CPI.
- Super contributions option. Ensures your superannuation contributions don’t take a hit when you’re receiving a monthly benefit.
- Business expenses option. Insure 100 per cent of the fixed running costs of your business.
- Lump sum accident option. A lump sum payment is provided if you are involved in an accident that leads to death or a specified injury.
- Day 4 accident option. Avoid the normal waiting period if you are disabled by an injury for more than three consecutive days.
- Trauma option. This entitles you to increased benefits when you suffer a specified trauma.
- Family care option. If you die while you are receiving a monthly benefit, your spouse will continue to receive the benefit for up to five years after your death.
- Other options. These include increased benefits in the first month of your claim, a severe disability option, a needlestick cover option and a home support option.
The following factors can affect the cost of your Zurich income protection premiums:
- The level of cover you choose. Premium is the most expensive and Standard is the cheapest.
- Your sum insured. The higher the income you need to replace, the more you will need to pay for cover.
- Stepped or level premiums. Stepped premiums start out cheaper and increase every year, while level premiums remain constant until you reach a certain age.
- The benefit period. The longer the benefit period, the more you will have to pay.
due toby illness sickness or injury Shorter waiting periods result in more expensive cover.
due toby illness sickness or injury Certain jobs are considered to be more hazardous than others, and the increased level of risk they represent will be reflected in your premiums.
- How often you pay your premiums. Paying half-yearly, quarterly or monthly results in an increased premium.
- Your gender. Premiums generally cost more for females than for males.
- Whether you smoke. Smokers pay higher premiums because of increased health risks.
- Your health status. If your medical history is patchy, expect to pay more for cover.
- Your pastimes. Love adventure activities such as hang-gliding and bungee-jumping? Expect to pay more for cover if you do.
In order to qualify for an income benefit payment under your Zurich Income Replacement policy, you’ll need to be under the regular care of a medical practitioner. Once you’ve served the waiting period that applies to your policy, you’ll be able to start receiving a benefit if you meet one of the following conditions as a result of sickness or injury:
- Your pre-disability income from your usual occupation has decreased by 20 per cent or more
- You’re unable to perform one or more “income-producing duties” of your usual occupation
- You’re unable to perform the income-producing duties of your usual occupation for at least 10 hours per week.
The benefit amount you receive will differ if you aren’t earning any income at all as opposed to if you are still able to earn a portion of your pre-disability income.
Under an agreed value policy, you’ll receive the insured monthly benefit as stated on your policy. If your cover is in the form of an indemnity value policy, you’ll receive the lesser of the insured monthly benefit and 75 per cent of your pre-disability income.
You’ll continue receiving benefits until one of the following occurs:
- Your illness or injury no longer prevents you earning a income
- The benefit period ends
- Your cover expires
- You die
- You are no longer under the regular care of a medical practitioner
- You are no longer following the treatment recommended by a medical practitioner
The age at which you can apply for cover depends on the benefit period you select:
- For benefits to the age of 55, you need to be between 19 and 48 years old when you apply for cover.
- For benefits to the age of 60, you need to be between 19 and 53 years old when you apply for cover.
- For all other benefit periods, you need to be aged between 19 and 59 years old when you apply for cover.
Zurich will not pay your income protection claim if your sickness or injury is caused by:
- An intentional self-inflicted act
- Attempted suicide
- Uncomplicated pregnancy or childbirth
- Elective surgery or donor transplant surgery (you’ll be covered if the surgery occurs more than six months after the date your cover starts, is increased or is reinstated)
- Any act of war
- Cooling-off period. After you take out cover and Zurich has sent you a policy schedule, you have 21 days to decide whether or not this cover meets your requirements. If it doesn’t, you can cancel your policy within this time and receive a full refund of your premium, as long as you haven’t made a claim or exercised any other rights under the policy.
- Premiums structure. Income protection insurance from Zurich is available with stepped or level premiums. Stepped premiums usually increase at each policy anniversary. Level premiums are based on your age when you apply for cover and stay the same at each policy anniversary until you reach your 64th or 65th birthday.
- Premium payment frequency options. You can choose to pay your premiums monthly, quarterly, half-yearly or yearly. Paying yearly is the cheapest option.
- Unpaid premiums. If your premium remains unpaid for more than 30 days after it is due, your policy will lapse.
- Maximum benefits. The maximum Zurich will pay per month is $40,000, but restrictions apply.
Awards received by Zurich
- 2015 Service Quality Award - AFA and Plan for Life
- 2015 Best of the Best Awards - Money Magazine
- 2015 Big Thinking Award - Financial Services Council
- 2014 Direct Life Insurance Excellence Award - PFL Research
- 2014 General Insurer of the Year - NIBA
- 2014 Insurer of the Year - Insurance Business "Brokers on Insurers Survey"
Ready to receive a quote for Zurich income protection?
If your in the market for a new income protection policy or looking to review your existing cover, you can make a secure enquiry with an insurance consultant and receive a quote for Zurich Income Protection. A consultant will contact you and explain any of the features of the policy you are unsure of and help you compare the policies from Zurich to other insurance options. This service is provided free of charge and theres no obligation whatsoever to sign up for cover.