Income Protection Insurance

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.

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.

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.

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.

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.

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

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

Medibank cannot offer Life Insurance cover or Income Protection Insurance cover to individuals with a diagnosis of HIV or AIDS at the time of application. That’s because we don’t use medical examinations as part of the application process, and so we are unable to assess the severity of the condition. However, you will not be excluded if you contract HIV or AIDS after you have purchased a policy. That means you may retain your policy, and we shall pay claims related to an HIV or AIDS illness, provided the claim meets the appropriate definitions of the policy.