Salary Continuance Insurance – Frequently Asked Questions

Information verified correct on February 20th, 2017

Why Should I Consider Salary Continuance Insurance?

Salary continuance insurance is a type of life insurance product that offers you some protection against loss of income you rely on from your regular employment, in case you are unable to work due to disability caused by accident, injuries or sickness.

Your salary continuance insurance coverage involves certain terms and conditions that are the basis for the insurance benefit to which you are entitled to claim in the future.

Before you make any purchase for a life insurance plan like salary continuance insurance, it would be prudent for you to understand some facts about this insurance product. Below are some typical questions related to salary continuance insurance.

What is a salary continuance insurance plan?

Salary continuance insurance provides you a source of income in case you are not able to work due to disability. Your disability must be caused by certain illnesses, injuries and accidents in order to avail of the insurance benefit. The insurance product is sometimes referred to as the income protection (although there are differences between the two) or sickness and accident insurance.

In the event that your disability renders you incapable to work and cannot earn from your employment, your insurance benefit will replace your regular pay check. You will receive a regular monthly benefit that will take the place of your income when you cannot earn yours because of your condition.

How much benefit will I receive from my salary continuance insurance?

The amount you will receive as benefit from your salary continuance insurance plan will depend on the agreed value provided in your insurance policy. The maximum amount that you can possibly claim is 75% of your monthly income. However, every insurance provider offers varied terms and conditions and may allow you to claim up to 100% of your monthly income but this is rarely the case and will likely give you a higher premium rate to pay.

It is worth noting that you will receive your insurance benefit either on a regular monthly installment basis for a certain period of time or in a lump sum as one time payment but this option will usually cost you a higher premium rate. You cannot receive the amount of your insurance benefit immediately. There is a waiting period between the time you sustained your injuries or illness and the time you can start receiving your benefit. Your options usually include 30, 60 or 90 days of waiting period. You will likely pay higher premium rate when choosing a shorter waiting period to receive your insurance benefit.

Which sicknesses and injuries are covered by salary continuance insurance?

It is important to emphasise that you will not be entitled to your insurance benefit if your disability resulting in a loss of income is caused by factors other than those allowed by your salary continuance insurance policy. Every insurance policy varies from one another. A comprehensive list is provided for you by your insurance provider consisting of the specific illnesses and injuries covered by your insurance plan. Self inflicted injuries are definitely not covered by your insurance policy and there are other exclusionary conditions that will not entitle you to a claim on your insurance policy.

It is wise to compare one insurance policy to another and determine which injuries and illnesses you want to avail for the coverage of your life insurance. The wider coverage you choose for your insurance plan the expensive the insurance premium will be. You can always weigh the costs and benefits when deciding which salary continuance insurance plan that best suits your circumstances.

How long will I receive my salary continuance insurance benefit?

Your insurance benefit is payable after the waiting period of your insurance policy. The payment will usually be for the entire duration of your temporary inability to work but in the case of permanent disability, the pay out period will depend upon the terms of your insurance policy. If you prefer to avail of permanent coverage you will likely pay a higher premium plan. Payment usually commences once you have been out of work due to your illness or injury.

Your insurance benefit will cease to pay you once you are no longer disabled to work, if you are no longer under regular treatment from a registered physician and upon the confirmation that you are medically and physically stable to return to work. Maximum pay out period for salary continuance benefit is usually upon reaching the age of 65.

Who will pay for my salary continuance insurance?

Generally, most companies apply for a group salary continuance as part of the benefit package they give for their employees. Getting salary continuance insurance by group is a cost effective means of getting insured. Your employer may either assume the whole amount of your premium or will offer to pay a portion of it and the remaining amount will be paid by you.

You need to check with your employer whether you are covered with this kind of benefit from your employment before deciding to apply for a stand alone salary continuance insurance policy. You can opt to have the amount of your monthly insurance premium deducted from your salary or to pay for it directly to your insurance provider.

Who can apply for salary continuance insurance?

You need to meet certain eligibility requirements before you can get a salary continuance insurance plan. You cannot apply and get instant approval for a life insurance policy. The approval of your application will depend upon variable factors. You should be able to work more than 20 hours a week on a permanent basis. Your occupation and risks are ascertained and your medical and health status are likewise evaluated.

High risk occupations will likely be covered with a higher premium rate. Your medical history will also affect the cost of your insurance premium. It is vital that you accurately disclose your medical history to avoid complications on your future claim. Some insurance providers may accommodate your application with certain limitations on your insurance coverage based on your circumstances.

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2 Responses to Salary Continuance Insurance – Frequently Asked Questions

  1. Default Gravatar
    Mark | December 19, 2016

    I have two superannuation so can I claim salary continuance from both policies?

    • Staff
      Maurice | December 21, 2016

      Hi Mark,

      Thanks for your question. Most insurers will reduce your claim if you have payment from another source e.g. a second insurer. You might find this page helpful:

      I hope this helps,


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