Intro:
We’ve recently spoken to several clients who were off work for extended periods due to illness or surgery. Many of them used up their annual leave or long service leave not realising they had income protection insurance through their super fund.
What Is Income Protection Insurance?
Income protection insurance is designed to provide you with a portion of your income (typically around 75%) if you’re unable to work due to illness or injury. It’s a safety net that can help cover your living expenses while you recover.
What many people don’t realise is that income protection is often included in your superannuation by default especially if you’re in a retail or industry super fund.
Why This Matters
Taking time off work for surgery, accident or illness can be financially stressful. Understandably, many people dip into their unpaid leave balances to stay afloat. However, if you have income protection insurance, you may have another option available to you without using up your hard-earned leave.
By the time many clients find out they were covered, it’s too late to lodge a claim for that period.
How to Check If You’re Covered
Log into your super fund account – look for a section on insurance.
Contact your super fund directly – ask if you have income protection and what the waiting and benefit periods are.
Check your annual super statement – it will list premiums paid for any insurance.
What to Do If You’re About to Take Time Off
If you’re planning surgery or need time off work due to illness or injury:
Check your coverage first.
Understand the waiting period. Some policies require you to be off work for a certain number of days before payments begin.
Keep medical certificates and documentation. This helps if you need to lodge a claim.
Disclaimer:
The information in this blog is general in nature and does not take into account your personal circumstances, financial situation, or needs. It is not financial advice. We recommend speaking with a licensed financial adviser or contacting your super fund directly to discuss your specific insurance cover and options.