Due to the number of insurance companies vying for your business, there are a large variety of alternative income protection insurance policies available, each with their own individual attractions.
Due to this, it is definitely advisable to review your insurance policy annually to ensure that you are receiving the best available deal for your requirements.
Ensure that your policy clearly defines the nature of your situation. Australian Income Protection policies normally use these levels of interpretation to assess levels of disability.
Duties Based: You will be paid a full benefit in the event of you being unable to execute the tasks of your occupation and because of this you are unable to work.
Hours Based: You will be paid a full benefit due to the number of hours that you work being adjusted for no more than 10 hours per week.
Income Based: Where you incur a loss of income of 20% or greater due to a disability, illness or injury. If you are unable to continue working and earn income, then the income protection benefit that you receive will be reduced.
Most of the Income Protection Policies follow the duties based procedure, however there are now policies available that include all these definitions and allow the client to select which option is best suited at the time the claim is lodged.