Does travel insurance cover loss of income?

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

• What are typical conditions around loss of income cover?

  In order to qualify for loss of income cover you'll typically need to satisfy the following conditions:

  • Disablement from the injury within occurs a certain time frame. This is usually 30 days or 90 days.
  • Disablement must continue for more than 30 days.The disablement must continue for more than 30 consecutive days following your return to Australia (or from when you originally planned to return to work)
  • You must be unable to return to previous work. As a result of your disablement, you are unable to return to your previous work or suitable alternative work
  • Medical certification. You must be under the regular care of a medical adviser and act in accordance with that adviser’s instructions. You will most likely also need the adviser to provide written confirmation that your disablement prevents you from gainful employment.
  • Centrelink payment may be deducted from the payment. Any benefits you receive through Centrelink or other insurance will be deducted from your payment.
  • Look for a comprehensive policy. Loss of income is typically not included in basic policies.

Which brands cover loss of income?

Provider	Maximum covered? This is the maximum covered and not neccessarily the amount you'll be paid	Payment length	Cover for dependents?	Conditions	Apply
Medibank	$10,000 $1,666.66 per month	Up to 6 months	No	No payment for the first 30 days after you originally planned to resume your work in Australia	Get quote
ahm	$10,000 $1,666.66 per month	Up to 6 months	No	No payment for the first 30 days after you originally planned to resume your work in Australia	Get quote
InsureandGo	$10,400 $400 per week	Up to 26 weeks	No	We will not pay for the first 28 days of your disablement from the time you return home	Get quote
Kogan	$45,000 We will pay You up to 75% of Your usual monthly net of income tax wage	Up to 6 months	No	No payment for the first 15 days after you originally planned to resume your work in Australia	Get quote
Tick	$10,400 $1,733.33 per month	Up to 6 months	No	No payment for the first 30 days of disablement from the time you return to Australia	Finder Award Get quote
Zoom	$10,400 $400 per week	Up to 26 weeks	No	No payment for the first 30 days of disablement from the time you return to Australia	Finder Award Get quote
Fast Cover	$10,400 $400 per week	Up to 26 weeks	No	No payment for the first 30 days of disablement from the time you return to Australia	Get quote
World2cover	$10,400 $400 per week	Up to 26 weeks	No	No payment for the the first 4 consecutive weeks of Loss of Income after you planned to resume your original employment	Get quote
Cover-More	$45,000 We will pay You up to 75% of Your usual monthly net of income tax wage	Up to 6 months	No	No payment for the first 15 days after you originally planned to resume your work in Australia	Get quote
Southern Cross	$6,500 $500 per week	Up to 13 weeks	No	No payment for the first 30 days after the day you would have returned to your job
Travel Insurance Saver	$10,000 $1,667 per week	Up to 6 months	No	No payment for the first 30 days after you originally planned to resume your work in Australia	Get quote
Easy	$45,000 We will pay You up to 75% of Your usual monthly net of income tax wage	Up to 6 months	No	No payment for the first 15 days after you originally planned to resume your work in Australia	Get quote
Australia Post	$10,000 Up to $1,666.66 per month	Up to 6 months	Yes	No payment for the first 30 days after you originally planned to resume your work in Australia	Get quote

^{Table updated August 2023}

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What conditions are not covered by travel insurance?

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.

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FAQs about loss of income

• As a freelancer, how is my loss of income calculated?

  For freelancers or self-employed individuals, insurers will typically require proof of your regular income prior to your injury. This might include tax returns, Business Activity Statements (BAS), invoices, or bank statements over a specific period. The benefit amount will be based on a verifiable average of your earnings, often up to a maximum weekly or monthly sum specified in your policy. You should carefully review the Product Disclosure Statement (PDS) for exact requirements.

• What if I can only return to work part time after an injury?

  Most loss of income benefits are designed for total disablement, preventing you from performing your usual work. If you can return to work part-time or in a reduced capacity, your policy may not provide cover or may offer a reduced benefit. It is essential to check your policy’s PDS for specific details regarding partial disablement and how it impacts your eligibility for benefits.

• Is there an excess or waiting period for loss of income benefits?

  Yes, most policies include an initial waiting period, known as a deferred period or excess period. This means you will not receive payments for the first specified number of days after your disablement begins or after you were scheduled to return to work. This period can vary between insurers, typically ranging from 15 to 30 days.

• Does loss of income cover pre-existing medical conditions?

  Generally, no. Travel insurance policies typically exclude claims arising directly or indirectly from pre-existing medical conditions. This means if your inability to work stems from an injury that is a complication of, or related to, a pre-existing condition that was not declared and approved by your insurer, you would likely not be covered. Always disclose all pre-existing conditions when purchasing your policy.

• What evidence do I need to provide for a loss of income claim?

  To support a loss of income claim, you will typically need to provide extensive documentation. This includes medical reports from treating doctors confirming your disablement, employment details such as a letter from your employer or proof of self-employment income, and potentially Centrelink statements if applicable. You may also need police reports if the injury resulted from an incident, along with any other documents requested by your insurer to verify your claim.

• Are mental health conditions covered under the loss of income benefit?

  Most travel insurance policies explicitly exclude illness from loss of income cover, and this often extends to mental health conditions. While some comprehensive policies might offer limited cover for mental health–related medical emergencies during travel, this benefit typically does not apply to ongoing loss of income upon your return. Always check your policy’s PDS for specific exclusions regarding mental or psychological conditions.

Written by

Jessica Prasida

Travel Insurance Expert

Jessica Prasida brings a decade of experience in the travel industry, including over four years as a travel agent and branch manager at STA Travel. She holds a Bachelor of Business and a Master of Marketing from the University of Technology, Sydney, as well as a Tier 1 General Insurance qualification that complies with ASIC guidelines. An avid traveller herself, Jessica combines her professional expertise with a passion for ensuring safe and enjoyable journeys for all travellers. Jessica was a Travel Insurance Publisher at Finder from 2019 to 2024. See full bio