Income Protection

What is Income Protection Insurance?

Income protection insurance is a type of insurance that provides financial support if you can’t work because you are temporarily sick, injured or disabled.

If you have income protection insurance and you make a claim, you will usually receive:

  • Up to 75% of your regular income
  • Paid monthly
  • For a set period, eg. 2 years or more – depending on the terms of your policy.

Do I have income protection insurance?

Many people have income protection insurance as part of their superannuation policy, and some have bought insurance directly from an insurer.

If you are unsure if you have this type of cover, you can call your super fund or insurer to find out.

Can I make an income protection claim?

We always recommend seeing a lawyer who is experienced in dealing with insurance companies and contracts of insurance.


If you have an income protection policy in place, there are many things that could affect your eligibility to make a claim.

Contact Us with your Questions
  • Income protection policies typically have a waiting period, which is the length of time you must be unable to work due to injury or illness before you can start receiving benefits.
  • You must comply with the specific terms of your policy. Your policy will outline the specific conditions and requirements for making a claim.
  • To support your claim, you’ll need to provide reports from your doctor. This medical evidence should show that your injury or illness is stopping you from working.
  • All policies have exclusions and limitations. Some might not cover pre-existing conditions, and/or they might have restrictions on certain types of injuries or illnesses.
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How much will I get paid?

The exact amount depends on your policy.

Indemnity value policy:

In this situation the amount you receive as income protection can change based on your current earnings.

Agreed value policy:

In this situation, the benefit amount is set when you start the policy and you receive that set amount even if your income has gone down.

Do time limits apply?

Yes. You usually need to apply within six months from the onset of your illness or injury. Limits vary depending on the terms of your insurance policy.

It’s very important to file your claim as soon as you become unable to work. If you’re outside your policy’s time limit, we recommend talking to an experienced claims lawyer to see if you still have options.

How much does it cost to use a lawyer to make an income protection claim?

  • Our lawyer’s fees are very reasonable. We only charge for the time we spend working to progress your claim. We record the time we spend working on your claim and you receive an itemised invoice at the end.
  • We are no win, no fee lawyers. You only pay fees if your claim is successful.
  • You pay at the end when you receive your claim money.
  • We never charge extras like ‘uplift fees’ which many other lawyers charge.
  • If you need medical reports, we can arrange for a funding body to pay for medical reports. (This is paid back at the end with some interest.)
  • Your first appointment is FREE. If you then choose to retain us, we provide a Costs Agreement which contains a written estimate of fees so you know upfront what the fees will be.
Find out more about our Fees

Making a Claim for Income Protection.

The claims process can vary depending on the terms of your policy.

There are usually 5 Steps to making a claim.

Step 1: Contact your Insurer.

You will need to request the claim forms you need to fill out.

You will need to collect medical evidence to support your claim. This usually means obtaining medical certificates or reports from your doctor that explain your illness, injury, or disability and how it affects your ability to work.

It’s important to provide accurate information about your condition and include confirmation from your doctor that you are likely to be off work for longer than the ‘waiting period’. You can then send the completed claim forms along with the supporting documents to your insurer.

The insurance company will review your claim based on the information you provide. They may request further information or an independent medical examination to assess your condition.

The insurer will make a decision on your claim. If it’s approved, you’ll start receiving income protection payments. If your claim is denied, the insurer will explain why and let you know about any options for further action.

Meet our Lawyers

Ivan Baxter

Senior Lawyer

Tyla Leo

Senior Associate

Bridget Barrie

Associate

Answers to FAQs

Does a wait period apply to my claim?

Yes. Wait periods apply to most income protection claims. Your policy will specify the time you must be off work before any payments are made. It could be a few weeks or several months.

This will depend on the terms of your policy. Generally, payments last for a specific period, eg. 2 years or more – depending on the terms of your policy.

There are a large number of conditions that qualify for income protection. Injuries caused by accidents, such as car accidents; sporting injuries, cancer, stroke, and chronic back pain would all be included. Some psychological injuries, like depression, are also covered.

Redundancy, unemployment, and self-inflicted injuries do not usually qualify for income protection.

If your injury or illness is likely to prevent you from permanently returning to work, we can help you make a TPD super claim – where you usually receive a lump sum payment.

No. Your injury or illness does not have to be work-related.

If you were injured at (or because of) work, you’re entitled to workers compensation and income protection. While you can legally claim both at the same time, it’s not always advisable as making a claim for income protection may trigger your policy’s ‘offset clause’.

An ‘offset clause’ reduces the amount of income protection you receive based on your other weekly or monthly payments.

There are some exceptions to offset clauses that a lawyer can advise you about.

If your worker’s compensation only covers medical expenses this will not trigger the offset clause and you should receive your full income protection payments, in addition to having your medical expenses covered by worker’s compensation.

Most income protection claims are approved within 1 – 3 months and payments begin sometime after that.

If you work some hours (but not full-time), you may receive a partial benefit or salary top-up.

Yes. Income protection is a replacement for your regular income, and it is taxed like your typical salary. Some insurers will withhold the taxable component and pass it on to the ATO on your behalf.

If your income protection claim has been rejected it’s worth speaking to a lawyer who is experienced in this area of law. Time limits apply to appeals, so ensure you speak to a lawyer as soon as possible.

Additionally, you can contact either the Superannuation Complaints Tribunal (SCT) or the Australian Financial Complaints Authority. 

Some insurers make it extremely difficult for people who don’t have a lawyer. They may tell you that your condition is pre-existing or even attempt to cancel your policy on the grounds of non-disclosure. If you receive a response like this, it is worth contacting a lawyer.

It’s not essential but it may be helpful.

  • Income protection policies contain specific terms and exclusions. A lawyer experienced in insurance claims will ensure you receive all the benefits you’re entitled to.
  •  Insurance companies can be difficult to deal with.
  • A lawyer will be able to advise you about all financial entitlements available to you. You may have a total and permanent disability claim if your injury or illness is long-lasting. If your injury is related to your workplace, you may also have a work claim.
  • A lawyer can assist you in collecting and organising relevant documents to maximise the likelihood of a successful claim.

TPD Super Claims – We are no win no fee lawyers.

We are compassionate, experienced and committed to the efficient progression of your claim. Make an appointment to see one of our experienced injury claim lawyers sooner rather than later, to ensure your rights are protected.

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