Zurich Income Protection Review
Zurich has simplified its income protection into 4 core plans. With Zurich Income Safeguard, you can enjoy flexibility and the chance to cover up to 70% of your salary.
Maximum % of income Covered
Maximum Monthly Benefit
Maximum Benefit Period
Zurich Income Safeguard provides an ongoing income if you can no longer work due to illness or injury. The insurance behemoth offers a choice of income protection policies that could meet your needs.
Pros and cons of Zurich Income Safeguard
- A benefit period up to 65 years on some income protection plans.
- There's an option to cover Business Expenses.
- Income protection products from Macquarie are now available under Zurich.
- Restriction on waiting periods for certain occupation types.
- To be eligible for cover, you must be in full-time employment (minimum of 24 hours)
Zurich Income Safeguard: A quick summary
|Maximum monthly benefit amount||Up to $30,000 – plus, an additional limit of $30k per month restricted to a 1- or 2-year benefit period.|
|Age of entry||19-60|
|Residency status||Australian resident or in the process of applying for Australian residency.|
|Employment status||Permanently employed or working between 20 and 60 hours per week. Or, employed in a non-permanent position/self-employed with consistent income for the last 2 years including 20-60 weekly work hours.|
|What products are offered?|
|How do I apply?||With an adviser over the phone|
What does Zurich Income Safeguard cover?
This policy pays out either for a partial or total disability benefit. Let's drill into the covers a bit more:
- Income benefit. You'll receive a monthly benefit of up to 70% 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. With Zurich, the waiting period options are 30-days, 60-days, 90-days, 1-year and 2-years.
- 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.
Additional options for Zurich Income Safeguard insurance
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.
The following factors can affect the cost of your Zurich Income Safeguard 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.
- 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 Safeguard 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
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
- Any act of war
- Illicit drug use
- Any event or medical condition specified as an exclusion on the policy schedule.
Read Zurich's PDS for a full list of common exclusions with your insurance.
- Cooling-off period. After you take out cover and Zurich has sent you a policy schedule, you have 30 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 $30,000, but restrictions apply.
Ready to receive a quote for Zurich Income Safeguard 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 Safeguard.