Income Protection Claims

Income protection policies offer a financial safety net for individuals who find themselves unable to work due to illness or injury. Income Protection insurance, also known as salary continuance insurance, may be attached to a superannuation policy or obtained directly from an insurer, and pays a monthly benefit if you have, as a result of injury or illness, become unable to perform the important duties of your own occupation and are not engaged in any other occupation. Income protection insurance may also pay a monthly benefit in circumstances where you are partially disabled from working in your usual occupation.

Understanding the intricacies of an income protection policy is important for anyone looking to protect their financial future. Brydens Lawyers are here to help guide you every step of the way and ensure your claim is a successful one.

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What You Need To Know

Navigating Benefit Payments and Benefit Periods

The core of income protection policies lies in benefit payments and benefit periods. A benefit payment refers to the monthly income you receive from an insurer, thanks to your insurance cover, while you are unable to work. These payments are usually a percentage of your regular income and are designed to ease financial burdens during difficult times.

Whereas a benefit period defines the duration for which you can receive these payments. They can vary, ranging from a few months to several years, based on the policy terms and the maximum benefit period.

Empowering Your Choices with Brydens Lawyers

Income protection claims can be complex, but with the right guidance, they offer substantial financial support in times of need. Understanding the nuances of income protection policies, from benefit payments to tax implications, is essential. Brydens Lawyers is committed to empowering you with the knowledge and support needed to navigate income protection claims successfully. We ensure that your journey towards securing your financial future is smooth and well-informed.

Contact Brydens Lawyers for expert advice on income protection claims and safeguard your financial well-being. Our team is dedicated to providing you with the comprehensive support you need to make informed decisions about your income protection cover.

Frequently Asked Questions

How are monthly payments calculated in income protection policies?

Monthly payments under income protection policies are typically calculated as a percentage of your regular income before you were unable to work. This percentage can vary, usually ranging from 50% to 75% of your pre-disability income. The exact figure depends on the specifics of your policy, including the level of cover you have chosen. Brydens Lawyers can help you understand your policy's structure and ensure your monthly payments align with your financial needs and policy terms. Simply call us at 1800 848 848 or contact us online to arrange an appointment.

How long do you have to wait before you receive your benefit payments?

The waiting period in an income protection claim is the duration between when you become unable to work due to illness or injury and when your benefit payments begin. This waiting period varies based on your specific policy terms and can range from 14 days to several months. The length of the waiting period you choose directly impacts the cost of your premiums—shorter waiting periods generally result in higher premiums, while longer waiting periods can reduce your premium costs. Understanding and selecting the appropriate waiting period is important for balancing your financial needs with the cost of the policy. Brydens Lawyers can provide guidance on how to select a waiting period that aligns with your individual circumstances and financial planning, ensuring you receive your benefit payments when you need them most.

What are the tax implications of income protection premiums?

Income protection premiums are generally tax deductible. This means you can claim the cost of your premiums as a tax deduction, potentially reducing your taxable income. However, it is important to note that any benefit payments received from the policy are usually considered taxable income. Brydens Lawyers can assist in navigating the tax aspects of income protection, ensuring you understand both the benefits and obligations under your policy.

How does group salary continuance insurance work?

Group salary continuance insurance is an employee benefit provided by some employers. It functions similarly to individual income protection policies but is taken out on a group basis. The key advantage here is often lower premiums and simplified underwriting processes. Coverage typically includes a portion of your salary paid out monthly if you're unable to work due to illness or injury.

What criteria must be met to qualify for a partial disability benefit?

To qualify for a partial disability benefit under an income protection policy, you must usually demonstrate that your ability to work has been reduced due to your disability, but you are not completely unable to work. This often requires medical evidence showing how your condition impacts your capacity to perform your job. The specific criteria can vary between policies. Brydens Lawyers can provide guidance on gathering the necessary documentation and meeting your policy's criteria for a partial disability benefit.

Income Protection Claims

Overview