Income Protection Insurance: protect against the unexpected

Life Insurance -

It’s important to take precautions, but some things in life are beyond your control. That’s why preparing for the unexpected is always worthwhile.

If you’re taking part in a sport like skiing, rugby or cycling, chances are you’re wearing all the right safety gear and abiding by the rules. Unfortunately, this isn't always enough. Picture the scene – you might be pottering along in a dedicated bike lane fully kitted out in helmet and reflective gear, but sometimes you simply can’t avoid bad luck. A rogue pot hole, car or even another cyclist could possibly result in an accident or injury. A recent study by the Medical Journal of Australia suggests serious injury rates among cyclists in Victoria rose by 8% per year from 2007 to 2015. This also led to health costs of $700 million for cyclists across the study. 

What is Income Protection Insurance?

TAL’s Lifetime Protection Income Protection provides you with an income to help continue living your life if you have an injury or illness and can’t work. Income Protection Insurance is paid out in monthly installments, and TAL can cover up to 75% of your monthly income at a maximum value of $12,000 per month until age 45 and a maximum cover of $10,000 from age 45-59 (although cover differs depending on individual circumstances). A reliable source of back-up income is usually crucial to keeping your household up and running. Having income protection measures in place can allow you to take the time you need to recover properly before returning to work.

What does Income Protection Insurance cover?

People usually choose to design their Income Protection Insurance around their individual circumstances. TAL divides income cover into three categories which you can mix and match:

Accident Cover
Accident Cover
 
Illness Cover
Illness Cover
Sports Cover
Sports Cover

Accident cover provides protection against household, workplace or transport accidents that stop you being able to work. You may already be in line for worker's compensation through your employer, but - as our recent blog notes - this might not be enough. If you're a freelancer or contractor, having your own protection in place is even more important. If cover for sporting accidents is also required, you are able to add Sports cover as well.  

What you're covered for:

  • If you are injured in an Accident that has left you Totally Disabled and unable to work in any gainful occupation

    OR

  • If you are injured in an Accident that has left you Partially Disabled and you have suffered a reduction of 20% or more in your ability to generate a monthly income, but you are still capable of performing some duties in a gainful occupation

Illness cover protects you against income loss due to medical events such as a heart attack or mental health related illness (carrying a 2 year benefit period). It's important to consider getting illness cover even if you are young and healthy - see our blog for more information.

 

 

What you're covered for:

  • If you suffer an illness that has left you Totally Disabled and unable to work in any gainful occupation

    OR

  •  An accident that stops you from going to work entirely, or that prevents you from doing your job properly, could make life very difficult – especially with bills to pay and if you have a family relying on your income. Fortunately, having the right insurance in place may help you protect yourself and your dependants against the unexpected

Sports cover extends the cover to injuries sustained while playing sport – like a broken collarbone from cycling or a torn ligament from a game of rugby. See our blog on how to avoid common football injuries for tips on how to avoid getting hurt in the first place.




 
What you're covered for:

  • If you are injured while participating in a Sport left Totally Disabled and unable to work in any gainful occupation

    OR

  • If you are injured while participating in a Sport that has left you Partially Disabled and you have suffered a reduction of 20% or more in your ability to generate a monthly income, but you are still capable of performing some duties in a gainful occupation
                  

 If you don’t feel comfortable working out which insurance suits your individual circumstances, you can speak to a financial adviser about your options – we can help you find an adviser here.

There are certain circumstances where income protection insurance cannot be claimed. These include incidents where an injury is self-inflicted, or if you are hurt while visiting a dangerous country against advice or committing an illegal act. You can read about these exceptions in full on TAL’s website and what is and isn’t included in your cover will be clearly detailed upon sign-up.
 
How much does Income Protection Insurance cost?

Prices vary depending on what type of cover you choose. You can use TAL’s cover builder to put together a quote that best suits your needs, and you'll be given the price that reflects the options you have chosen. You will need to answer some questions about your lifestyle that will help dictate the type of cover you are eligible for.
 
How long does Income Protection last?

 You can apply for income protection insurance if you are between 18 and 59 years old. For some occupations, generally those with a focus on manual work, you may be limited to age 54. The cover will remain in place until the Policy Anniversary before your 65th birthday.  This may be dependent on your chosen waiting and benefit periods.  Your waiting period applies from the Date of Disablement before Benefits start to accrue. You would also elect your Benefit Period (subject to eligibility). This is the length of time we will pay you a Benefit once we have accepted your claim. 

At TAL, we want to make getting Income Protection Insurance as simple as possible and we’re here to help. There is plenty more information, including more details on types of cover, income protection benefits and how to make a claim on our website. 

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