You are allowed to have multiple income protection policies, and there are legitimate reasons why people choose more than one product. For example, you may feel the default income protection provided in your super fund isn’t comprehensive enough for your needs.
How many times can you claim income protection?
Each time you make a claim that’s accepted, you can be paid for up to 5 years, as long as you’re still unable to work due to the sickness or injury during that time. You can claim as many times as you need over the life of the policy.
Can you claim more than once on income protection?
You can have more than one income protection insurance policy but the level of payout, if you need to claim, will be capped by the insurance companies and reinsurers will ensure you don’t exceed these limits based on what you were earning before you became unable to work.
What happens if you have 2 income protection policies?
Income protection benefits are capped at 75% of your income. This means if you have two income protection policies and claim on both, your total payout from both will still equal 75% of what you earn. So by having more than two policies, you may be paying for benefits you won’t receive.
Can you claim life insurance twice?
Yes, you can claim on multiple life insurance policies where you have complied with your duty of disclosure and disclosed this in every subsequent life insurance application form that you have an existing policy and the fact you are maintaining the existing policy as well as taking out an additional policy.
What income protection does not cover?
Income protection will not cover you in the event of employment termination or if you are made redundant. It is designed to assist a policyholder in the event they cannot perform their job, due to illness or injury.
Can you claim income protection if you lose your job?
The short end of it is that income protection doesn’t cover you if you resign from your job. However, if you are involuntarily made redundant you can get an income protection plan that will help you while you are on a hunt for a new job.
How long does income protection last for?
The benefit period is how long the monthly payments will last if you remain unable to work due to your illness or injury. Most income protection policies offer two or five years, or up to a specific age (such as 65). The longer the benefit period, the more expensive the policy.
Are income protection plans worth it?
the risk of not being covered, along with the peace of mind having it can bring. Income protection is often worth it if you value peace of mind – and if the risk of not being covered is too great in your circumstances.
Do you have to pay back income protection?
Do I still have to pay for cover if I am receiving the benefit? No, you don’t have to pay for cover if you are under claim.
How is income protection cover calculated?
In our experience, the most common method for insurers to calculate your benefit is to average out your monthly income over a period (usually 12 months) prior to you becoming partially or totally disabled (usually called your “pre-disability income”) and pay your benefit according to a percentage of that income.
Can you claim TPD and income protection at the same time?
Can I have both income protection and TPD? Yes. If you have cover for income protection and TPD, you can usually claim both and the claims do not usually impact each other. Some people assume that they can’t claim a TPD benefit when they are being paid income protection or similar benefits.