How Long Does Income Protection Last?

If your claim under income protection insurance is accepted, your insurer will provide benefits throughout a period known as the benefit period. This is the period where you will receive monthly payments from your insurer while you are unable to work. The length of this benefit period depends on the type of benefit you’re claiming for and your insurer’s guidelines.

The standard benefit period for redundancy benefits is a maximum of 3 months for each claim. For disability benefits, some insurers provide a maximum benefit period of 1 to 2 years, however other insurers provide a maximum benefit period to age 65 and 70.

It’s important to remember that you’ll only receive benefits throughout a benefit period while you’re unable to work. Once your benefit period expires or once you’re able to work again (whichever comes first), then you’ll stop receiving benefits.


How Long Will My Policy Last?


Most income protection policies will cover you until you turn 60, 65, or 70 years old, depending on your insurer and their guidelines.

With most policies, you’ll also be covered by income protection insurance until one of the following happens:

  • You cancel your policy
  • You’re unable to pay your premiums
  • You retire
  • You pass away


How Soon Will I Receive Benefits?


If your claim is accepted, you’ll have to complete a waiting period before you receive benefits from your insurer. This waiting period is the period between your date of disablement (as certified by a medical professional) and the start of your monthly payouts.

The length of the waiting period depends on your insurer and your policy guidelines. Some of the most common waiting periods that insurers use include:

  • 14 days
  • 30 days
  • 60 days
  • 90 days
  • 180 days
  • 1 year
  • 2 years

Check your policy guidelines or your insurer’s Product Disclosure Statement (PDS) to confirm your waiting period for income protection.


What Should I Consider When Choosing a Policy?


When deciding between different income protection plans, you should always consider the following:

  • Benefit Period – The longer your benefit period is, the more expensive your premiums will likely b 
  • Waiting Period – Shorter waiting periods typically demand higher premiums than long waiting periods because it allows you to receive benefits sooner. It is important to note that many insurers pay the benefit monthly in arrears, which means you may not receive your first benefit payment for up to an additional month on top of your waiting period.
  • Nature of Your Occupation – Always remember that you’ll only receive benefits from income protection while you’re unemployed or unable to work. You won’t be eligible for benefits once you’re capable of working.


Need More Help?


If you want to know more about how long income protection lasts, feel free to contact us. We can compare income protection insurance from different providers to help you find your best options based on your needs and budget.

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