When you become unable to work because of an injury or illness, you may feel helpless. Even though you may be eligible to make another personal injury claim, depending how your injury occurred, you should also be aware of your potential superannuation insurance benefits, especially income protection to sustain your financial stability.
What is income protection?
Income protection is a type of Superannuation insurance benefit that is paid to an injured or sick person on an ongoing basis for a certain period when they are unable to work.
The amount and benefit period are dependant on your policy however, generally, up to 95% of the pre-injury income will be paid during the first six months, and the income protection benefits will continue with up to 70% after the sixth month.
The duration of the income benefits is not fixed; depending on the policy, they can be made until a specific age such as 65, or until the income benefit period that is mentioned in the superannuation insurance policy.
How to make an income protection claim?
1- Contact your employer and superannuation insurer
You should contact your employer and insurer as soon as you become unable to work to start your income protection claim. Your insurer will then send you the paperwork you need to submit the claim.
2- Get a statement from your GP
You should get a statement from your GP about you not being able to work due to your medical condition.
3- Fill out the income protection claim form
Fill out the income protection claim form that you will get from your superannuation insurance company. Attach all necessary documents including the statement from your GP, work history, payslips, identification documents etc. Otherwise our TPD lawyers can assist you with the process as lodging income protection claims are what we usually do concurrently whilst acting for our clients who are also making TPD claims.
4- Wait
Once the claim is made with the right supporting documentation, you will be waiting for your insurer’s answer. Depending on the policy a waiting period of 0-90 days will apply.
What is the most secure way to make an income protection claim?
You can directly reach our experienced personal injury lawyers to ensure your income protection claim is handled in the most professional way.
Who is eligible for income protection?
There are various cases that can make you eligible for income protection. The most common examples are as follows:
Specific injuries
Suppose you suffer any one of the specific injuries laid out in your policy and are still suffering from this injury after the end of the waiting period. In that case, you may be paid monthly benefits depending on what kind of injury it is. For example, a salary continuance policy might pay the full monthly benefits for 3 months in the event of a fractured pelvis, 24 months for total blindness or 60 months for the total loss of multiple limbs.
What should I do if my income protection claim is refused?
If your income protection claim is refused, you still have a chance to receive your entitlements. In that case, you can make a complaint about your insurer’s decision.
You should not waste any time and contact our TPD lawyers to make your protection claim complaint.
The difference between income protection and TPD
| Income Protection | TPD |
|---|---|
| Can be claimed when you are unable to work | Can be claimed if you are no longer able to work in your usual or any occupation based on your education, training and experience |
| Pays a monthly benefit, during a predetermined period | Usually pays a lump sum payment |
| Benefits include up to 95% of the pre-injury income for a period of time of usually 2-5 years | Benefit payouts amount typically range between $70,000 – $2,000,000 |
Whilst not all superfunds automatically grant you cover for both you can have both TPD Insurance or income protection to secure your future and receive more benefits if you become unable to work.
A successful income protection claim
Liam is a 48-year-old dad who takes care of three kids. He has been working as a bookkeeper which provides him $90,000 annual income. In 2020, Liam was suffered a back injury whilst at home. He wasn’t eligible to make any personal injury claim as his injury occurred at home by accident.
Thankfully, Liam had income protection insurance that providesd him with monthly payments to pay his daily expenses to financially support him whilst he was at home and unable to work. Liam started receiving $6,180 during the first 6 and $5,150 after the 6th month as income protection payments. These amounts were equal to his 90% and 75% pre-injury salary.
Once was better he became able to work, his income protection payments ceased.
What percentage of Australians have income protection insurance?
According to Rice Warner’s report in 2017, 33% of Australians have income protection that can financially support them if they become unable to work.
Reach our superannuation lawyers for a free claim check
Our superannuation lawyers who are experienced in income protection claims provide free claim check. Our team works on a No Win No Fee basis that lets you know how much you will be charged in advance only when we win your case. Our TPD lawyers service clients Australia wide given the law around TPD and income protection are commonwealth based and not state.
Feel free to reach us at any point in your superannuation claim process so we can assess your situation as soon as possible for you to receive your full entitlements. Call our team on 1800 952 901 or fill out the free claim check form to reach us.
Issa Rabaya
• Bachelor of Laws
• Graduate Diploma in Legal Practice
• Approved Legal Service Provider to the Independent Review Office
• Member of the Law Society
