The Best Income Protection Policies in Australia
July 26, 2022

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7 Key Features of Income Protection

Income Protection insurance can change your life for the better. Since it’s insuring perhaps the most valuable asset you’ll ever have – your income – you want to be sure you make the right choice when it comes to your Income Protection policy.

The best Income Protection policies should be tailored to meet your needs and circumstances. You should take care and research well to ensure you get the best out of your policy. You’ll want to shop around and compare premiums, final cover and additional features.

There is no stock-standard Income Protection policy. Each one differs according to extras and special features they include. But all the best Income Protection policies in Australia have specific features you may want to include. To distinguish the best Income Protection insurance policies from the pack, keep an eye out for these features:

1. Automatic inflation increases

Also known as automatic indexation, this feature increases your cover to keep it on par with fluctuations in the Consumer Price Index. That way, your monthly insured amount stays in line with inflation so it keeps its value over time.

2. Partial disablement

With a partial disability, you can still be limited in your capacity to work. A partial disablement benefit in your income protection policy makes sure you still receive a partial monthly benefit to help you out with your finances.

3. Recurrent disablement

If you have a persistent illness or injury that comes back within the six months since you returned to full-time work, you want to know that you’re covered for the full period of your disability. With this feature, if you’ve suffered a relapse in your disability, you can waive the waiting period and receive a benefit faster.

4. Accidental death

Should you suddenly die while your policy is still running, your beneficiaries will receive a lump sum payment so they can continue to live with financial security after you’re gone.

5. Premium waiver

With this feature, if you’re receiving a total or partial disability benefit, you don’t have to pay any premiums on your Income Protection insurance.

6. Rehabilitation benefit

If you’re unable to work because of illness or injury, it’s likely you may be facing large medical costs. If you’re totally disabled and need to participate in a rehabilitation program to get you back on track, a rehabilitation benefit can help cover the costs of approved programs or equipment.

7. Unemployment cover

With some insurers, you can receive an unemployment benefit if you’re unemployed for a specific number of consecutive days and if you have a loan with their company. The benefit is usually channelled directly into your loan account so you can keep up with your minimum repayments.

At Wealth Smart, we recognise that each and every one of you is unique. We believe your Income Protection insurance policy should be tailored to suit your own personal needs. As you grow older, your circumstances will change, as will your family’s needs.

If you want to make sure you choose an Income Protection insurance policy that is perfectly tailored to your needs, consult one of Wealth Smart’s insurance advisers today.

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