What would you do if an illness or injury forced you to take an extended period of time off work? Would you be able to keep up with the cost of living? Could you pay your medical bills, keep up with rent or mortgage payment, maintain your family’s life style, or ensure your business still operated without you?
Because accidents and illnesses can occur when you least expect them to, BT Income Protection helps you pay for regular living expenses, as well as medical bills and rehabilitation not covered under Medicare or your regular health insurance policy.
How does it work?
If you’re sick or suffer from a sustained injury that prevents you from working and earning an income, performing regular household duties, or running your own business, BT will replace up to 75% of your monthly income. You’ll be able to meet your regular day-to-day expenses until you’re ready to return to work again.
BT Income Protection can also be beneficial in covering the unexpected costs of medical bills, rehabilitation, and can also help cover rent or mortgage payment, education costs. It can also be used in case you need to modify your home to facilitate your injury or pay for housekeeping.
Those aged between 17-59 can apply for the premium, with the expiry age being 65 (although some occupations can qualify for an extension of policy benefits up until age 70).
What conditions trigger a payout?
Most income protection policies require that the policy holder or insured person must suffer from a qualifying medical condition, BT’s Income Protection policy has no restriction on what kind of illness or injury it must be. As long as you have medical underwriting to prove you are unable to attend your normal occupational duties, you could receive the regular monthly payout.
Is there a waiting period to receive my benefit?
Different waiting periods apply for different levels and types of cover, and can range from 14 days up to 720 days.
What sort of cover can I choose from?
BT has three types of income protection policies to choose from, with additional different levels of cover to select between these three types. Whether you’re employed full-time, have dependants, or run your own business, BT has a level of cover that could serve as a backup plan should you fall sick or become injured.
- General Cover Income Protection
If you’re unable to perform any two activities of daily living, or if you’re suffering significant cognitive impairment, General Cover IP provides funds to pay for assistance in your home, and can help pay for modifications to your home should you need them as a result of your illness or injury.
- Home duties Income Protection
Because the effects of an illness aren’t purely financial and can prevent you from performing your day-to-day household duties, Home Duties Income Protection is designed to help provide a regular monthly benefit based upon BT Australia’s homemakers occupation. This can help cover the costs of house keeping and/or child/care. The maximum premium you can apply for is $5000.
- Own Occupation Income Protection
Provides replacement income if you’re unable to work in your usual occupation.
In addition to these types of cover, BT also offers options for those needing extra benefits:
- Income Protection – Superannuation contribution option
Ideal for those who want to hold the policy within their superannuation and take advantage of the 9 per cent superannuation guarantee contribution, or accumulated superannuation balances, to finance the cost of income protection cover. Plus an additional 5% to make your superannuation contributions.
- Business Overheads
If you have your own business, imagine what could happen if you weren’t physically fit to maintain it. This type of cover pays a monthly benefit for the day-to-day costs of running a business for up to 12 months if the insured person is disabled because of sickness or injury and is unable to work at their full capacity in their business. It could mean the difference between the business surviving or collapsing.
- Income Protection Plus
Provides extra benefits for the insured person, including a nursing care benefit, crisis benefit, transport within Australian benefit, home care benefit, and a transport from overseas benefit, Waiver of IP premimum.
Depending on your type and level of Income Protection, you could take advantage of:
- CPI increases
BT guarantees that your TPD coverage will be just as valuable when you make a claim as it was when you first took it out. BT does this by automatically increasing the amount of your benefits each year to correspond with the rising Consumer Price Index.
- Increasing claims benefits
If you’re receiving benefits from this policy, the monthly benefit will be increased on each review date by the CPI, so your policy will be as valuable as the day you first took it out.
- Guaranteed upgrades
BT will automatically upgrade your policy to its latest version, as long as the latest version doesn’t result in an increase in premium, so you won’t have to miss out on any improvements.
- Loyalty benefit
If you’ve held your Income Protection Policy with BT for three years, BT will add a death benefit of $50,000 without any additional charges.
- Multi-policy discount
If you’re covered by more than one BT policy, you could get a 5% discount for taking out multiple covers.
- Wrap and Platform Super discount
If you pay your benefit premiums through a Wrap or Platform Super account, you will receive a 10% discount on those premiums.
- Guaranteed renewable
BT guarantees that your Term Life policy is 100% renewable. As long as you pay your premiums, BT will not cancel your insurance, even if your health, occupation or lifestyle changes.
- Premium Holiday
Want to pause your policy, without the hassle of re-applying later? If you can’t afford your monthly premium payments, BT can pause your policy for a maximum of 12 months if you’ve held it for longer than 6 months.
- World-wide coverage
Relocating? You’ll still be covered, no matter where you are in the world.
Want to compare this policy with others? You can compare BT’s premiums with other policy providers through our free quote service.
© 2012 Wealth Smart Life InsurancePage last updated: June 19, 2014