If you were sick or injured, could you afford to take an extended period-of-time off work? Would you have enough savings to be able to keep up with the costs of living?
If you already have critical illness insurance, your lump sum can help you pay off large medical bills or help cover the costs of rehabilitation. But if you need to take time off work for a while, you might need a replacement monthly income. Because accidents and illnesses can occur when we least expect them to, MLC Income Protection Insurance helps you pay for your regular living expenses when you’re unable to work.
How does it work?
If you have a medical condition that prevents you from working and earning a regular income, or performing regular household duties, or running your own business, MLC can replace up to 75% of your monthly income. Rather than relying on your savings or taking out loans, you’ll be able to meet your regular day-to-day expenses until you’re ready to return to work and earn an income again.
Depending on your occupation, you could apply for a monthly benefit of up to $30,000, or up to $60,000 for some professional occupations such as surgeons, accountants and solicitors. You can also choose your own benefit period, which is how long you’d like to receive your replacement income for. Generally, you pay a lower premium for a shorter benefit period.
What conditions trigger a payout?
MLC will pay you your monthly benefit if you’re considered to be disabled and unable to perform your usual work duties. There are three different types of Income Protection Insurance to choose from, and each has its own definition of a qualifying disability. For example, if you hold Income Insurance Protection Platinum, you could still work for 10 hours a week and earn 80% of your normal income. Whereas with the standard Income Protection Insurance option, you must be completely unable to work.
In some instances, a partial disability benefit can be claimed. For example, if you’re disabled and working in a limited capacity, MLC will replace the percentage of income you’ve lost from reducing your hours worked.
Is there a waiting period to receive my benefit?
You can choose your waiting period when you apply for Income Protection Insurance. This is an initial period during which you won’t be able to receive any benefits after you make a claim. You can choose a waiting period of between 14 days up to 2 years. Generally, the longer the waiting period, the lower the premium.
What sort of cover can I choose from?
You can choose from three different types of insurance. Each can be held as a stand-alone product, linked to your other MLC insurance policies, or held within your super.
- Income Protection Insurance Platinum
Offers the highest level of income protection insurance with the widest range of benefits. With this option, you can also choose to receive your benefit as a lump sum, rather than a monthly benefit.
- Income Protection Insurance
Ideal for those looking for an economical way to protect their income with basic features and benefits.
- Income Protection Special Risk
Designed for workers in particularly hazardous occupations, such as armed security guards.
- Child support income benefit
You can insure your children for up to three times the amount of your monthly benefit and an additional $25,000. If your child dies or falls sick, MLC will pay this benefit to you.
- Rehabilitation expenses
MLC will provide you with an amount equal to 12 times your monthly benefit to cover the costs of rehabilitation programs or equipments.
- Premium Waiver
If you’re receiving your benefit you won’t have to pay your premiums.
- Recurring disability benefit
If you return to work and your disability reoccurs, MLC will treat this instance as a continuation of the original benefit. This means you can avoid waiting times and receive your benefit sooner.
- Death benefit
Your family will receive a lump sum amount of up to $60,000 if you die when your policy is in force.
- Increase your insurance
You can increase your insured amount without medical underwriting for certain life events. You can do this once every three years for a maximum of 20% each time.
For an extra cost, you can also add a range of other benefits to ensure your insurance is as complete and comprehensive as you need it to be. These other benefits include an accommodation benefit, a nursing benefit, home assistance benefit and an advance payment benefit.
Want to look at other income insurance policies? You can compare MLC’s insurance with other policy providers through our free quote service.
© 2012 Wealth Smart Life Insurance