Income Protection Built in Accident Injury Benefits

Published: July 28, 2013

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.

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)


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Occupations that this income protection benefit can help

  • Bricklayers
  • Builders
  • Cabinet makers
  • Carpenters and Joiners
  • Cleaners
  • Concreters
  • Contractors
  • Electricians
  • Factory workers
  • Fencers
  • Fitter & turners
  • Gardeners & those in property maintenance
  • Glaziers
  • Handyman or tradesman
  • Metal workers
  • Painters
  • Plasterers
  • Plumbers
  • Roofers
  • Tilers
  • Trades people or tradesmen

Case Study: Income protection scheduled injury benefits

Jason is 37 and works as a builder. One day while working on a two story home, Jason slips off the ladder and lands on his side. His work colleagues call for an ambulance which rushes Jason to hospital for x-rays, where the doctor confirms that he has fractured his upper arm due to the impact of the fall.

Luckily Jason's income protection policy has a scheduled injury benefit which covers him at work as well as at home. He is paid two months worth of benefits, even though he is able to go back to work after one month.


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