Cover your business expenses if you can't work following illness or injury with MLC
MLC Business Expenses Insurance will reimburse you up to $60,000 per month so you can keep your business afloat if you are unable to work due to serious illness or injury. This payment can cover your fixed expenses such as utility bills and staff wages so you can keep your business running and focus on your recovery.
The policy comes with a number of additional benefits including a death benefit of up to $30,000 in the event you pass away. This review will explore the features of the policy and when you will and will not be eligible for a benefit.
What does MLC Business Expenses Insurance cover?
- Disability benefit. If you’re unable to work due to sickness or injury, MLC Business Expenses Insurance offers a monthly benefit of up to $60,000 to help you cover your fixed business expenses. Benefits can be paid for up to a year and can be used to cover rent or mortgage payments, cleaning costs, electricity and water costs, accounting services, professional membership fees and more.
- Choice of waiting period. The waiting period is the initial period after a sickness or injury occurs when you will not receive benefits. You can choose a waiting period of 14 or 30 days, with a longer waiting period resulting in cheaper premiums.
- Premium refund. Your MLC Business Expenses Insurance premiums will be refunded to you while you are disabled and receiving benefits.
- Recurring disability benefit. If your disability returns after you go back to work, and if this happens while your policy is in force and within six months of your return to work, this will be considered to be a continuation of the previous disability. This means you will not have to serve another waiting period, while any disability that recurs after six months will be treated as a new claim.
- Return to work during the waiting period. MLC Business Expenses Insurance gives you the freedom to return to work during the waiting period. The waiting period will then be extended by the number of days you work. However, if you return to work for more than five consecutive days, the waiting period will restart.
- Death benefit. MLC Business Expenses Insurance also pays a lump sum benefit of three times the monthly benefit amount if you die while the policy is in force. The maximum death benefit available is $30,000.
Additional cover available with MLC Business Expenses Cover
- Platinum Option. Available for an extra premium, the Platinum Option allows you to receive a proportion of the covered expenses (up to a maximum equal to your monthly benefit amount) if you become partially disabled. The exact benefit amount you are eligible to receive is calculated based upon the difference between your business earnings before the disability and the business earnings after the disability occurs. A different definition of total disability also applies when you select this option.
When will a benefit be paid?
If you need to make a claim, it’s critical that you contact MLC as soon as possible to get the claims process started, but at least within 30 days. Once you or your legal representative contacts MLC, the insurer will send out the necessary forms and inform you of the steps you need to take before your claim can be assessed.
You will also need to provide, at your own expense, any information the insurer requests to process your claim. For example, you may need to provide evidence from your treating medical practitioner of your sickness or injury. However, if MLC requires you to undergo a financial audit or a medical examination by a person it appoints, the insurer will pay for it.
Who is eligible for MLC Business Expenses?
MLC Business Expenses Insurance is available to Australian residents aged between 19 and 60 years of age. You can apply for a monthly benefit of between $1,500 and $60,000, while cover expires when you reach 65 years of age.
You’ll need to be self-employed or operate a small business in order to take out cover. If there is more than one owner of the business, you will receive a benefit to cover your share of the fixed business expenses.
When won't a benefit be paid?
Your MLC Business Expenses Insurance claim will not be paid if the disability, condition or loss arises as a result of:
- Attempted suicide
- Any other intentional self-inflicted injury
- Normal and uncomplicated pregnancy or childbirth
- Any sickness or injury that first appeared, occurred or was diagnosed before cover started or before your policy was last reinstated
- War or warlike operations
You will also not be reimbursed for:
- Any expenses you could claim elsewhere
- Payment or other benefits of any kind to you
- Any expense not normally paid before your disability occurred
- Repayment of the principal of a loan or mortgage that started less than a year before the disability
- The cost of merchandise or equipment for your business
Other features about the policy to be aware of
- Premium waiver. Your MLC Business Expenses Insurance premiums are automatically waived while you are receiving benefits.
- Outside super. The policy is only available outside your super fund.
- Portable. If you change businesses, you can take your MLC Business Expenses Insurance with you. You have the freedom to apply this insurance policy to your new business if you wish.
- Premiums. MLC Business Expenses gives you the flexibility of choosing between stepped and level premiums. Premiums can be paid monthly via credit card or direct debit from your nominated bank account, or yearly or half yearly via credit card, direct debit, cheque or BPAY.
- Cooling-off period. If you change your mind about cover within 14 days of taking out a policy, you can cancel your MLC Business Expenses Insurance and receive a full premium refund.
- Cover ends. The cover provided under your MLC Business Expenses Insurance policy ends when the first of the following occurs:
- You cancel your insurance
- You retire or stop working and don’t intend to return to work
- You haven’t done paid work for 12 months, except when this is a direct result of disability
- The termination date for your policy
- Your premiums aren’t paid
- You make a fraudulent claim
- You die