Income protection insurance provides a monthly benefit of up to 75% of one's income if they are unable to work due to illness or injury. It pays benefits until the person returns to work or reaches retirement age. The insurance helps cover expenses like mortgages, rent, living costs, and medical bills. Specific benefits include disability payments, inflation protection to increase coverage amounts over time, and waived premiums while receiving disability payouts. Premium costs depend on factors like occupation, income, benefit period, waiting period, policy type, and personal details.

1. Income Protection Insurance
The Security of Your Future

2. Income Protection in Australia
• Income Protection Insurance will provide
you with an income if you are unable to
work due to long term illness or injury.
• Income Protection is a monthly benefit
that pays you up to 75% of your income
and covers you for accidents, illnesses or
major traumas. It pays you up until you
return to work , If you cant return, up
until retirement age being.
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3. Income Protection Helps
• Having an income cover plan means
that should injury or illness strike,
you can continue to live your life and
still be able to pay for:
 Your mortgage or rent
 Day-to-day living expenses
 Medical expenses associated with
your sickness or accident
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4. Benefits of Income Protection
• Income Protection provides the
following built-in benefits:
 Total Disability – a monthly benefit
that covers up to 75% of your
income if you are Totally Disabled
at the end of your waiting period.
 Inflation Protection – an annual
automatic increase to your cover
to ensure your benefit keeps pace
with inflation and maintains its
value.
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5. Benefits of Income Protection
• Waiver of Premium – while you are a receiving
a benefit for Total Disability, your Income
Protection premiums will be waived.
• Usually, income protection insurance covers
nearly 70 percent of policyholder's normal
earning, but it could be less for high earners.
• The benefits are paid regularly after the
deferred period, which is the time between the
valid claim and actual commencement of
benefit payment.
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6. Income Protection Comparisons
• Premiums – there are many things which can
affect your final income protection insurance
premiums. They will typically look at things like
your:
 Occupation
 Insurable income
 Benefit period options
 Waiting period options
 Policy type (agreed or indemnity)
 Age, gender & smoking status
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7. Income Protection Premiums
• There are two types of premiums:
• Level Premiums – where your premium
remains the same over time.
• Stepped Premiums – where your premium
increases every year. This option may be
cheaper at the beginning of your
contract, but will become more expensive
over time.
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8. Thank You
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This presentation does not represent and products or services provided by
IncomeProtectionDirect.