What Does Income Protection Insurance Cover?
Income protection insurance typically pays up to 70% of your pre-disability income when you suffer from a severe injury or illness that prevents you from working. Most income protection payouts will continue until you are able to work or when the benefit period expires–whichever occurs first. Newer generation income protection products are subject to more stringent claim requirements with a greater focus on your income in the immediate lead up to your claim. Whichever type of policy you have, we will help you understand it and manage the claim in an efficient and empathetic manner for you.
While workers’ compensation can provide a benefit if you get injured at work, income protection generally covers illnesses or injuries outside of work, often providing coverage wherever you are in the world.
Income Protection Claims: The Process
A successful income protection claim gives you access to temporary income replacement while recovering–but how do you process one?
Depending on your policy, there are several options that you may take:
- Through an insurance claims advisor – For an individually owned policy and held outside of super, consulting with an insurance claims advisor saves you time and avoid claim application pitfalls. An advisor will help you submit a well-prepared claim application.
- Individual application – For a policy owned outside of superannuation and obtained individually, you can process your claim directly with your insurance provider.
- Through your superannuation or group insurance – For a policy owned inside superannuation or part of employee benefits, you may contact your fund administrator or your human resources department to help you with the claims.
Note: Individually processing a claim will require you to understand your insurer’s process and requirements. A misinterpretation of documents and evidence may result in delays to your claim.
Curo’s simple 6-step income protection claim process:
While each insurer has a unique claim process, you may use our easy-to-follow guide if you are planning on processing a claim individually.
Step 1: Contact your insurance provider and obtain the claims package
Contact the insurance provider and inform them of your intent to lodge a claim. Generally, the insurer will need basic information, such as:
- Your name
- Policy number
- Insured’s name
- Reason for the claim
Once provided, the insurer will send the claims package and their process.
Step 2: Check claim eligibility
Review your income protection insurance policy to determine your eligibility to process a claim. For income protection insurance claims, below are the common factors that insurers normally pre-screen:
Policy validity
The policy premiums are paid and up to date.
Coverage period
Your age is within the policy’s coverage period.
Reason for claim
Your medical condition is covered under your policy
Waiting period
Typically, options include 30 days, 60 days, 90 days or 2 years of not working—waiting period must be met before the payments start.
Step 3: Gather medical evidence and documents
If processing individually, this step will require you to be extremely persistent and organized. Gathering all medical evidence, such as a medical report from a doctor, a statement from your employer, payslips or tax returns, or any other documents that will support your claim, is crucial.
Step 4: Complete claim forms and submission
Ensure that you have filled out the forms correctly, supplied all the necessary documents, and that you are sending it to the correct recipient. Refer to the insurer’s guide on submission and document all communications with them for future reference.
Step 5: Follow up with the insurer
It is typical for insurers to take some time with their decision, usually within a few weeks to months. However, during a prolonged evaluation time, you may reach out to your insurer for follow-up.
Step 6: Be persistent if the claim gets denied
When your claim is declined, do not lose hope. Claims may be rejected due to misinterpretation of documents or claim forms–and insurers’ decisions are not always final.
In Australia, every individual has the right to appeal the insurer’s decision. Consulting with an income protection claims expert will help you plan a stronger appeal.
