Income Protection and Returning to Work

Income protection policies can help you in more ways than simply providing a replacement income. Insurance companies have policies in place that can assist you when it’s time to return to work.

What is income protection?

Income protection pays you a monthly benefit of up to 75% of your income, once your waiting period has passed. It is paid out to you in the event you cannot perform in your occupation due to any illness or injury that occurs to you. There is not a set list of conditions, like with trauma insurance, in which you are covered. It quite simply acts as a replacement income for you, should you stop working. It is designed to cover your usual bills, rent/mortgage, living expenses or whatever it is that you generally spend your income on. Income protection is also 100% tax deductible.

How will the insurance company help me return to work?

Most life insurance companies offer different levels of income protection policies. Depending on the policy you choose there can be a rehabilitation expenses benefit included in the policy. It’s one thing to fall sick or seriously injured, stop working and have an insurance company cover your costs but quite another to have them see you out and assist you with returning to work. It’s in the best interests of everybody to have you return to work, hence why insurance companies do offer a valuable benefit like this. The thought of returning to work after a substantial time off can be quite daunting, especially if you have lost some skills or training.

What is a rehabilitation expenses benefit?

The life insurance company will pay the cost of a rehabilitation program, however, most of the policies include the stipulation that they will need to approve the program in advance. The rehabilitation program must be necessary as part of a structured return to work program.

This benefit does not usually cover additional expenses such as wheelchairs, artificial limbs, home and car modifications, travelling and education expenses.

What is a rehabilitation incentive benefit?

Some life insurance companies take the benefit a step further and include a once-off benefit if you return to full-time paid employment for 6 consecutive months after attending a rehabilitation program. The program will need to be approved by the insurer.

Talk to a life insurance broker today to see what type of income protection products are include as a part of the policy.