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.