Why Income Protection Insurance Matters | Green Associates

Why Income Protection Insurance Matters and How to Claim It

Financial AdviceDecember 20, 2022

Life doesn’t always go according to the thoughtful plan you’ve created alongside Green Associates.

Life doesn’t always go according to the thoughtful plan you’ve created alongside Green Associates.

For when you’re unable to work due to illness or injury, income protection insurance can pay part of your salary to alleviate financial stress. The payments can help cover living costs, as well as bills like your mortgage so you can focus on rest and recovery.   


What is an income protection claim?

Also known as Total and Temporary Disability (TTD) or salary continuance claims, an income protection claim is a claim for a monthly income replacement because you cannot work due to injury or illness.  


Should I have income protection insurance?

Whether income protection insurance is important for you depends on your individual circumstances. It can be especially helpful if you are self-employed or a small business owner without sick and annual leave, or have dependents relying on you.


How do I get income protection insurance?

As an Australian worker, you might already have income protection insurance through your bank as attached to your mortgage or credit card, or through your super. You can also purchase income protection insurance separately through an insurance broker or company.


What type of insurance policy should I buy?

The only type of income protection policy that is offered after 31 March 2020 is an indemnity value policy, with a benefit payment that depends on your income at the time of making a claim (rather than a benefit that’s fixed based on when your policy started). Premiums paid for income protection insurance held outside of super are generally tax deductible.


How much income protection cover do I need?

This depends on your living expenses, debt obligations, whether you have any dependents and of course, what you can afford. At Greens Associates, advice on insurance is one of our services – book an appointment today to find out whether you need a policy in the first place, and how much is right for you.  


How much is the payment and when will I get it?

Typically, you are covered for around 75% of your pre-injury income. There will usually be a 30 to 90-day waiting period before you can start receiving monthly payments. If you cannot wait that long and need urgent financial help, your insurer or super fund may be able to help.


What is and isn’t covered by income protection?  

Each income protection policy has its own terms and conditions on what is covered. Check your insurer’s website or the product disclosure statement for inclusions and exclusions.


It’s crucial you know that income protection insurance will not cover loss of income from reduced hours or redundancy. If you are concerned about this, book an appointment with a Greens Associates advisor to put in place a redundancy plan today.


How do I make a claim?  

The process depends on who you hold your income protection policy with. Typically, if it is through:

  • an insurer, then contact the insurance company
  • an insurance broker or financial adviser, then speak to them first
  • your super, then contact your fund
  • your employer, then speak to them first


There will be forms to be completed, and you will need to provide information such as:  

  • medical reports and test results  
  • details of your work duties and hours  
  • payslips and tax returns, or financial statements if you are self-employed


Depending on your insurer and policy, you may need to:  

  • go to an independent medical exam with a doctor who reports to the insurer  
  • have regular assessments and complete progress updates



Need more advice that’s personalised to your situation? Speak to our knowledgeable, friendly team on 1300 815 921 or info@greenassociates.com.au  

At Green Associates, all of our advisers are fully licensed and listed on the ASIC Moneysmart Financial Adviser Register. Green Associates is committed to providing the best solutions for you and your wealth-creation journey. 

Written by

Tyson Matthews

Financial Adviser

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