1.What benefit periods are available for income protection insurance & accident insurance?
You should be able to choose between a range of benefit periods (with standard lengths including 2 years, 5 years, and to age 65) with good income protection insurance companies. Companies that offer benefits to age 65 will naturally be more expensive.
2.Does the policy offer premium waiver while on claim?
Good income protection policies will waive your premiums while you’re on claim, and will not require you to pay premiums. Good quality policies won’t require you to pay extra for this feature.
3.Does the policy cover ‘Totally Disabled’ and ‘Partially Disabled’?
Most income policies cover ‘Partial Disability’ and ‘Total Disability’ however definitions will vary between insurers. If you work in a slightly more hazardous occupation you may decide that your policy will need exceptional ‘Partial Disability’ and ‘Total Disability’ definitions. Check the product disclosure statement’s to compare these definitions and find out which suits your needs best.
4.Is there a time limit of Partial Disability payments?
There is no time limit as such, as partial disability payments are paid according to your benefit period as outlined in your policy. Benefit periods can vary, however they are usually either 2 years, 5 years, or until age 65. In comparison, some general insurance policies pay a benefit for a limited period of time only.
5.Are rehabilitation benefits available?
If you live paycheck to paycheck, your finances may not cope with the additional medical expenses incurred because of injury or illness. Income insurance policies with rehabilitation benefits can help.
6.What sort of exclusions exist for the policy?
Most income insurance policies will not pay claims for injuries or illnesses that are considered to be self-inflicted, occurred while conducting an illegal activity, were a result of military service or of normal pregnancy or childbirth. These exclusions are actually in your interests – claims paid for these reasons would eventually drive up premiums for every customer insured with the company.
7.How are psychological conditions treated?
Psychological conditions are not treated any differently when compared with other illnesses or injuries. It all really depends on whether your policy covers this or not. You can find out if psychological conditions are covered by reading the product disclosure statement; be on the look-out for words like mental health or mental illness. If you believe you do not need this feature in your income protection policy, some insurers offer premium discounts if you are happy to have a mental health exclusion placed on your policy.