Frequently Asked Questions

​​

1. What is income protection insurance?

Income protection insurance is a policy designed to provide you with a regular income if you’re unable to work due to illness or injury. It typically covers up to 70% of your pre-tax income, helping you manage living expenses and financial obligations while you recover.

​

2. Who should consider income protection insurance?

Anyone who relies on their income to cover essential expenses—like rent or mortgage, bills, and daily costs—can benefit from income protection insurance. It’s especially valuable for those who are self-employed, work in high-risk professions, or do not have substantial sick leave or emergency savings.

​

3. How much of my income does it cover?

Income protection policies generally cover up to 70% of your pre-tax income, though this can vary based on the provider and policy details. The amount is designed to provide enough for essential expenses without exceeding what you'd typically earn after taxes.

​

4. How long does the coverage last?

Coverage duration depends on the policy you select. Some policies provide benefits for a set period, such as 2-5 years, while others continue paying until you reach retirement age or are able to return to work. You can choose a policy that matches your needs and financial goals.

​

5. How soon can I start receiving payments?

Income protection policies have a “waiting period” or deferment period, which is the time you must be off work before payments begin. Typical waiting periods are 14, 30, 60, or 90 days, but you can choose a period that suits you. Policies with shorter waiting periods may have higher premiums.

​

6. Are my premiums tax-deductible?

In many regions, income protection premiums can be tax-deductible. However, tax rules vary, so it’s best to consult with a tax advisor to understand how it applies to your specific situation.

​

7. What is the difference between income protection and critical illness insurance?

Income protection insurance provides a regular income if you cannot work due to illness or injury, regardless of the type. Critical illness insurance, however, pays a one-time lump sum if you’re diagnosed with a specific serious illness, like cancer or heart disease. Many people find value in having both types of coverage.

​

8. Can I adjust my coverage over time?

Yes, most providers allow you to adjust your coverage based on changes in your income, financial responsibilities, or life circumstances. Adjusting coverage may affect your premiums, so discuss options with your insurer as your needs evolve.

​

9. Does income protection insurance cover mental health conditions?

Many policies do provide coverage for mental health conditions, such as depression and anxiety, if they prevent you from working. However, the extent of coverage can vary, so it’s important to review your policy details or discuss with your provider.

​

10. What happens if I can only work part-time due to illness or injury?

Some income protection policies offer partial benefits if you can return to work but only in a reduced capacity. These benefits can help bridge the gap between your part-time income and the income protection amount.

​

11. Can I claim income protection if I am laid off or unemployed?

No, income protection insurance only covers loss of income due to illness or injury. It does not cover job loss due to layoffs or voluntary unemployment.

​

12. How do I file a claim?

If illness or injury prevents you from working, you’ll need to contact your insurer and provide the necessary documentation, which usually includes medical evidence and employment records. Claims are typically processed quickly, and your provider can guide you through the process.

​

13. How much does income protection insurance cost?

Premiums for income protection vary based on factors like your age, health, occupation, coverage amount, waiting period, and benefit duration. Our advisors can help you find a policy that suits your needs and budget.

​

14. How does income protection fit into my overall financial plan?

Income protection is a crucial element of a robust financial plan, providing security and peace of mind. It helps ensure you can maintain financial stability and meet your expenses if you’re unable to work due to health issues.

​