Injury with no income? The saving grace of Income Protection
Suffering from an injury or illness that prevents you from being able to work is a frightening predicament to find oneself in. With the ever-rising cost of living, most Australian families do not have the luxury of being able to afford for one of their income earners to take months or even years off work due to a debilitating injury or illness. Due to this, some Australians attempt to ‘tough it out,’ but in reality, end up causing themselves further damage to their health.
What these people may not know however, is that most Australians have insurance for exactly this scenario in their Superannuation account. This type of insurance is called income protection.
Income Protection Insurance: Definition and How It Works
Income Protection is a type of insurance, most typically found in Superannuation cover, that insures a member should they be unable to work due to injury or illness. Income protection will then provide a regular payment, usually monthly, that is paid to a nominated account while you are unable to work.
When can I go on Income Protection?
Income protection usually has a waiting period, however can differ based on the individual policies. The waiting period for income protection is normally around three (3) months. Once income protection payments begin, they usually last for between two (2) to five (5) years.
How much is income protection?
Income protection covers a portion of your usually weekly wage. As such, you will likely have to submit pay advices from your employer that demonstrate how much you were earning before your injury or illness. The payments from the income protection insurer are normally around 75% of your pre-injury weekly wage. Income protection payments can be reduced by other income, such as Centrelink.
How do I make a claim?
Contact an insurance lawyer from Littles Lawyers, from there your superannuation policy, or any other insurance policy that may be relevant will be reviewed to determine whether or not you are insured for income protection.
Once cover is confirmed, we will begin assisting you to gather any relevant medical evidence and complete the necessary paperwork. We then lodge the claim on the insurer and handle all correspondence so as to minimise the stress on you.
Littles Lawyers offers income protection claims on a no win no fee basis.
What if the insurer denies my claim?
Sometimes insurer can attempt to deny claims, either through disputing the medical evidence, or through policy loopholes. If your claim has been denied, we can assess the validity of the denial and advise if there may be grounds to appeal the decision. The risk of denial is why it is important to seek proper advice ensure your claim is set up for success as well as possible before officially lodging.
What happens when the benefit period runs out?
Ideally, income protection will act as stop gap while you recover from your injury or illness and then transition back to the workplace. However, for some injured people, this is not possible. If you are unable to return to your usual occupation even once your income protection payments are exhausted then you may classify for another superannuation claim, total and permanent disability.
Therefore, if you are off work due to injury or illness and are concerned about your income, contact Littles Lawyers for a no obligation consultation today.
If you have any queries regarding the article, please contact via Free Claim Checker or email us.
