Income protection insurance pays part of your lost income if you're unable to work because of a disability caused by illness or injury. It can help pay the bills so you can focus on getting better.
What income protection insurance covers
If you're unable to work due to partial or total disability, income protection insurance pays:
• Up to 90% of your pre-tax income in the first six months, and
• Up to 70% for a specified time after six months.
Income protection insurance is designed to replace your income based on your annual earnings in the 12 months prior to your illness or injury.
Each income protection policy has its own definition of partial or total disability that must be met before a claim is made. Check the insurer's website or the product disclosure statement (PDS) for the definition and any exclusions.
