Being sick is hard enough without having to also worry about your finances. Your ability to earn an income is one of your greatest assets, so it makes sense to protect it. That’s where Income Protection insurance can help.
What is Income Protection insurance?
Income Protection insurance helps protect you and your family by paying a monthly benefit if you're unable to work due to sickness or injury. This can help cover your living expenses, such as your mortgage, school fees and car repayments.
By providing you with a monthly benefit, income protection allows you to focus on your recovery.
Income Assure and Income Assure+
- Monthly Benefit of up to $30,000 (including Super Guarantee Benefit and the Booster Option, which depends on your income) to replace part of your income when you’re sick or injured and can’t work. This maximum includes all Income Protection insurances you hold with MLC and other insurers.
- While you're receiving payments, we'll automatically waive your premium.
- Recurring disability benefit if your disability recurs while this insurance is in force, as well as an elective surgery benefit.
- Choose a Waiting Period of 14 days, 30 days, 90 days, one year or two years.
- Up to 12 times your Monthly Benefit for rehabilitation expenses for up to 12 months (outside super only).
- Death benefit of up to $30,000.
How does it work?
You'll receive a Monthly Benefit for each month of your benefit period while you're Totally or Partially Disabled.
We offer two types of insurance. Your financial adviser will help you decide which is the most appropriate for you.
- Income Assure: provides our standard level of insurance.
- Income Assure+: provides our highest level of insurance.
A Monthly Benefit for each month you're Totally Disabled or Partially Disabled between $1,500 to $30,000 (including Super Guarantee Benefit and the Booster Option, which depends on your income).
Waiting and benefit periods
1. Choice of Waiting Period
There is a Waiting Period before your benefit is paid.
A shorter Waiting Period means your benefit will be paid sooner.
Your premiums will cost more for shorter Waiting Periods.
2. Choice of benefit period
Up to age 65
Up to age 70
Your benefit period is the maximum period you'll receive your monthly benefit for.
A longer benefit period means your benefit can be paid for a longer time period.
You premiums will cost more for longer benefit periods.
1. for people in certain hazardous occupations:
- the Waiting Periods available are 30 days and 90 days only, and
- The benefit periods available are 2 years and 5 years only.
We calculate your stepped premiums on each Review Date based on your age and the applicable premium rate at that time. Stepped premiums will usually increase each year as you get older, and also if you increase your sum insured or because of Inflation Proofing increases (if applicable).
Income Protection insurance is available both inside and outside super.
You can apply for these options at an additional cost:
- Super Guarantee Benefit: If selected, you're eligible to have contributions to super made on your behalf while receiving a Total Disability Benefit or a Partial Disability Benefit. This means we'll pay a Super Guarantee Benefit into your nominated super fund in addition to the Monthly Benefit for either Total Disability or Partial Disability).
- Indexed Claim Benefit: Keeping your benefits in line with the rising costs of living and inflation. Your Monthly Benefit and Earnings Before Disability will be increased annually by the CPI rate up to $30,000 after your Monthly Benefit has been paid continuously for an entire year.
- Short Waiting Period for Accidental Injury (Income Assure only and only where 14 days or 30 days Waiting Periods apply): If you’ve selected the Short Waiting Period Option, you can receive benefits sooner. We’ll pay you a benefit during the Waiting Period if you’re Totally Disabled for at least three days because of an accident.
- Short Waiting Period for Accidental Injury and Critical Illness Option (Income Assure+ and only where 14 days or 30 days Waiting Periods apply): You can receive benefits sooner if you've selected the Short Waiting Period Option. We’ll pay you a benefit during the Waiting Period if you’re Totally Disabled for at least three days because of an accident or a Critical Illness.
- Booster Option (Income Assure+ only): If you select the Booster Option and you’re Totally or Partially Disabled, we’ll pay the Booster Option amount; and add 20% to the percentage used to calculate your Income Replacement Ratio amount.
- Severe Disability Terms Removal Option (Income Assure only): If you’ve selected the Severe Disability Terms Removal Option, after two years on a claim, the definitions of Total Disability and Partial Disability will not require you to be Severely Disabled.
- Age 70 Benefit Period Option (Income Assure+ only): If you select this option, we’ll cover you for Total Disability and Partial Disability up to age 70.
Do you need Income Protection insurance?
You may want to consider Income Protection insurance if you:
- have a partner, family or dependants
- have a mortgage or any other personal debt
- have a business or self-employed
- would need money to live if you were unable to work
- don’t have adequate savings to cover unexpected expenses.