Income Protection Insurance

Question 1

Total Disability Benefit

Answer

You'll be paid a monthly benefit if due to an illness or injury you're:

Totally disabled for at least 14 out of the first 19 consecutive days of the waiting period
Either partially disabled or totally disabled for the rest of the waiting period, and
Totally disabled after the end of the waiting period.

Question 2

Partial Disability Benefit

Answer

You'll be paid a monthly benefit if due to an illness or injury you're:

Totally disabled for 14 days out of the first 19 consecutive days of the waiting period
Either partially or totally disabled for the rest of the waiting period, and
Partially disabled after the end of the waiting period.

You can't claim both a Total Disability Benefit and a Partial Disability Benefit at the same time.

Question 3

Death Benefit

Answer

If you die while your income protection policy is in place, a lump sum of $10,000 will be made to the surviving policy owner or your estate.

The Death Benefit is in addition to any other benefits that have been paid, like the Total Disability Benefit.

Question 4

Rehabilitation Benefit

Answer

The Rehabilitation Benefit can reimburse you for the costs of occupational rehabilitation services that will directly help you return to work.

This can be up to 12 times your income protection cover amount and is in addition to your monthly benefit and any other benefits paid from your policy.

Question 5

Waiver of Premium Benefit

Answer

Your income protection premiums will be waived while you're entitled to monthly benefits.

Question 6

Recurrent Disability Benefit

Answer

If you suffer a recurrence of your disability in your previous claim, within six months of the disability stopping, it will be treated as a continuation and no waiting periods apply.

Question 7

Increasing Claim Benefit

Answer

When you've been on an income protection claim continuously for a full year, the Increasing Claim Benefit will increase the monthly benefit by whichever is the lower of:

The consumer price index
3%.

This is designed to help you keep up with changes to the cost of living.²

Question 8

Future Income Benefit

Answer

If your income increases, this allows you to increase your income protection sum insured amount by up to 10% without having to provide further medical evidence.

Question 9

Premium and Cover Pause Benefit

Answer

The Premium and Cover Pause Benefit allows you to pause your Income Protection Cover for up to 12 months over the life of the policy. This is designed to help you in the event of financial hardship. This also means you won't be covered during the period the cover is paused.

Question 10

Interim Accident Cover

Answer

Interim Accident Cover provides a monthly benefit of up to $5,000 if you're totally disabled because of an accident, while we're assessing your fully completed and submitted income protection application. The benefit period you applied for (two or five years) is the maximum period of time that will apply under this benefit.

Question 11

How does income protection insurance work?

Answer

Income protection insurance is designed to help cover your income if you can’t work due to an illness or injury.

With Medibank Income Protection, you can be covered for up to 70% of your monthly pre-tax income, up to $12,500 per month (depending on your age).¹ This means, if you’re unable to work to your full capacity, and you meet the terms and conditions of the policy, we’ll pay you a monthly benefit payment of up to 70% of your income.¹ For full details, please refer to the PDS.

Question 12

What is a Waiting Period?

Answer

A Waiting Period is the length of time you need to be disabled and off work before benefit payments commence. The Waiting Period starts when you become totally or partially disabled. Under a Medibank Income Protection policy, you can select a Waiting Period of either 30 or 90 days.³ You will not be paid any benefits during the Waiting Period.

Question 13

What is the maximum income protection benefit payable?

Answer

With Medibank Income Protection, if you’re aged between 18-50, you’re eligible to be insured for up to 70% of your pre-tax income, up to a maximum of $12,500 per month.¹

If you’re aged between 51-55, you’re eligible to be insured for up to 70% of your pre-tax income, up to a maximum of $10,000 per month.¹

You can choose a Benefit Period of two or five years, which is the maximum period of time we’ll pay you whilst you’re disabled.³

For more information on maximum benefits under Medibank Income Protection, refer to the PDS.

Question 14

What does income protection not cover?

Answer

Each income protection policy is different. Income protection policies can have certain exclusions or conditions that may not be covered. In these circumstances, your benefit payment may be reduced, or you may be unable to claim on your policy.

Under Medibank Income Protection, the monthly benefit may be reduced for a number of reasons, including:

If you’re receiving annual leave payments or sick leave payments during the period when monthly benefits are payable.
If you’re receiving any amounts under workers' compensation, any other income protection or similar insurance policies or any government payments relating to the illness or injury.

Under Medibank Income Protection, a benefit may not be paid for a number of reasons including:

A claim arises from participation in criminal activity or occurs during travel to an overseas location against advice issued by the Australian Government.
Intentional self-inflicted injury, attempted suicide, or death as a result of suicide.
Normal and uncomplicated pregnancy, miscarriage or childbirth.

For more information and a full list of exclusions and benefit adjustments under Medibank Income Protection, please refer to the ‘Exclusions’, and ‘Benefit adjustments’ sections of the PDS.

Question 15

Does income protection cover mental health?

Answer

Based on your medical history, mental health conditions may be covered under an income protection policy. Medibank Income Protection does not have a standard mental health exclusion.

Question 16

Does income protection insurance cover redundancy?

Answer

Whilst some insurers may offer cover for redundancy, Medibank’s Income Protection Insurance does not.

Question 17

Is income protection insurance tax deductible?

Answer

Income protection premiums are generally tax deductible. You should seek tax advice from your accountant or tax agent.

Help and support

Income Protection Insurance

Help protect the life you're building, with Medibank Income Protection

Award winning income protection

Why choose Medibank Income Protection?

No medical tests required to apply

Income protection premiums are generally tax deductible

Access to Medibank 24/7 Nurse

Medibank health members save 10%

What does Medibank Income Protection include?

Important details to know

What's not covered?

Waiting Periods and Benefit Periods

How to apply for Medibank Income Protection?

1. Get a quick quote online

2. Tailor your income protection policy

3. Purchase online or over the phone

Frequently asked questions

How does income protection insurance work?

What is a Waiting Period?

What is the maximum income protection benefit payable?

What does income protection not cover?

Does income protection cover mental health?

Does income protection insurance cover redundancy?

Is income protection insurance tax deductible?

More about income protection

What is income protection insurance?

How does income protection work?

What’s the difference between income protection and life insurance?

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