Can travel insurance cover loss of income?

Will travel insurance cover me if I'm injured overseas and can't return to work? Find travel insurance to cover loss of income.

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Important:

Travel insurance rules continue to change as a result of the coronavirus pandemic. We’re working hard to keep up and make sure our guides are up to date, however some information may not be accurate during the pandemic. It’s even more important to double-check all details that matter to you before taking out cover. Please know that some policies may not be available through Finder at this time. Here are some helpful tips:
    • If you're buying a policy today, it's unlikely that you'll be covered for any coronavirus-related claims
    • If your travel plans go against government advice, your policy will most likely be voided and you won't be covered
    warningFinally, some good news! Domestic travel is picking up, so some insurers have started offering cover again 🦘 Just remember, you won't be covered for any pandemic related claims if you do take out domestic travel insurance.

    Many comprehensive travel insurance policies include a loss of income benefit. Under the benefit, you’ll receive an ongoing weekly benefit if you are injured during your journey and are then unable to return to work when you get home. A regular income while you are unable to earn a living, can provide the financial assistance you need to keep your head above water and focus on recovering.

    How does travel insurance protect me?

    If you're injured on your travels and can't return to work, then travel insurance can provide you with:

    • A substitute income up to a maximum specified amount
    • Cover for an extended period of time
    • Payments on weekly basis or monthly basis

    Which brands cover loss of income?

    ProviderMaximum covered?Payment lengthCover for dependents?ConditionsApply
    1-cover-logo

    1cover

    $10,400Up to 26 weeks
    • No
    No payment for the first 30 days of disablement from the time you return to Australia
    AMEX Travel Insurance

    American Express

    $10,400Up to 6 months
    • No
    No payment for the first 30 days after you originally planned to resume your work in Australia
    Budget Direct Travel Insurance

    Budget Direct

    $10,400Up to 6 months
    • No
    No payment for the first 30 days of disablement from the time you return to Australia
    Fast Cover

    fastcover

    $10,400Up to 26 weeks
    • No
    No payment for the first 30 days of disablement from the time you return to Australia
    InsureandGo

    Insureandgo

    $10,400Up to 6 months
    • No
    No payment for the first 30 days of disablement from the time you return to Australia
    Online Travel Insurance

    Online Travel Insurance

    $10,400Up to 26 weeks
    • No
    No payment for the first 30 days of disablement from the time you return to Australia
    Skiinsurance.com.au

    Ski-insurance

    $10,400Up to 26 weeks
    • No
    No payment for the first 30 days of disablement from the time you return to Australia
    Tick Travel Insurance

    Tick Travel

    $10,400Up to 6 months
    • No
    No payment for the first 30 days of disablement from the time you return to Australia
    travel insurance saver logo

    Travel Insurance Saver

    $10,000Up to 6 months
    • No
    No payment for the first 30 days after you originally planned to resume your work in Australia
    worldcare travel insurance logo

    Worldcare

    $10,400Up to 26 weeks
    • No
    No payment for the first 30 days of disablement from the time you return to Australia
    youGo

    youGo

    $6000Up to 6 months
    • $1000 for accompanied children
    No payment for the first 30 days after you originally planned to resume your work in Australia

    Table updated September 2019

    For a full list of conditions that apply to your travel insurance loss of income cover, check the product disclosure statement (PDS).

    Am I covered due to illness?

    When it comes to loss of income, most policies will exclude cover if you're unable to work due to an illnesses. Some policies will not specifically state an exclusion for illness however it's vital that you check the fine print of your policy to work out when cover will and will not apply.


    Is the loss of income of my dependents covered?

    Child cover is offered by these brands

    Loss of income cover for accompanying children on your trip is provided by the following brands:

    Both these brands provide up to $1,000 in cover for each child.

    What about my spouse or partner?

    To get the same loss of income cover for your partner, you'll have to get a family policy or take out an additional policy for your partner.

    For all other policies

    For all policies that have no included cover for dependents, you can get a family policy and name your dependent (Spouse/partner/child) as an insured person.


    Am I still covered if I receive a payment from Centrelink?

    Your travel insurance policy may contact Centrelink and check for any benefits you've received for your inability to work. If you have, then this amount will be deducted from the payment your travel insurer pays you. Both

    Travel Insurance Saver and Easy Travel Insurance explicitly state this in their product disclosure statements.


    What are the exclusions for this cover?

    Some providers will exclude disability as a result of illness from loss of income cover. Other common exclusions are:

    • No cover for any loss of income as a result of your death
    • No cover for the first 30 days after you planned to return to work
    • No cover if you do not become disabled within 30 days of the injury
    • The benefit will only be paid for a limited time period, for example a maximum of 26 weeks
    • No cover if your injury is covered by any other insurance or statutory benefits
    • No cover for the loss of income of your dependents

    What should I do if I’m injured overseas?

    There are several things you can do to ensure that you receive the best possible care if you’re injured overseas, including:

    • Notify your insurer. You need to notify your insurer of any incident that may lead to a claim as soon as possible. You’ll usually need to fill out a claim form and your insurance provider will advise you of any other steps you need to take.
    • Get reports. If you’re caught up in an incident that involves the police, get a written copy of any police report. Ask your doctor for a medical report that includes the date of the accident, the injuries you received and any treatment.
    • Keep your receipts. In some cases your insurer will cover all your medical bills upfront, but in other situations you’ll need to pay for some expenses out of your own pocket and claim them back later. Make sure to keep receipts for everything.
    • Comply with your insurer’s requests. If your insurance provider requests additional information or documents to support your claim, make sure you provide them as soon as possible.

    Compare travel insurance with loss of income cover

    Picture: Shutterstock

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