Apart from different policy types, at first glance income protection policies may all seem the same. However this is technically untrue, as some policies have added benefits built into their standard income protection insurance policies at no additional cost.
Income protection scheduled injury benefit
One such income protection benefit is the scheduled injury benefit offered by some insurers in Australia. If you sustain a specific injury as outlined in a product disclosure statement (PDS), either at work or at home, the insurer will pay a minimum benefit of usually around two months once a valid claim form is received.
This means that you can receive a benefit payment irrespective of the time you have taken off from work to recover. The more severe the injury, the higher the minimum payment you can receive. Depending on the life insurance company, the benefit can be paid monthly or as a lump sum as outlined in the PDS.
Most policies that have this additional benefit usually also state that you must wait until your income protection Waiting Period has expired before benefits can be paid.
Buy Income Protection Directly
Policy Maximum Monthly Benefit Percentage of Income Covered Benefit Period Waiting Period NobleOak Direct Income Protection Receive up to 75% of your monthly income with Income Protection Insurance. Cover essential living expenses when you’re unable to work due to an illness or injury. Consider the PDS. Issuer is NobleOak Life Limited ABN 85087648708. AFSL 247302.
Example of injuries for income protection scheduled injury benefit
Below are examples of injuries from a major insurer where you can receive a scheduled injury benefit if you meet the set conditions. Please note these injuries will vary depending on the life insurance company you are looking at.
|Total and permanent loss of|| |
Payment period (months)
|Use of your legs or your legs and arms due to paralysis|| |
|Both feet or both hands or sight in both eyes|| |
|Any combination of a hand, a foot and sight in one eye|| |
|One leg or one arm|| |
|One hand, or one foot, or sight in one eye|| |
|The thumb and index finger of the same hand|| |
|Fracture of the|| |
Payment period (months)
|Skull (except bones of the face or nose)|| |
|Upper arm|| |
|Shoulder bone|| |
|Leg (excluding ankle)|| |
|Knee cap|| |
|Forearm (above the wrist)|| |