COVID-19 Income Protection FAQs

Answers about COVID-19 (coronavirus) and income protection

Does the current pandemic situation affect income protection insurance? We’ve compiled answers to some of the questions we are receiving from customers. The situation is evolving, so we’ll keep this page up to date with new information as it is released.

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1. This advice is general and has not taken into account your individual objectives, financial situation, or needs. You must consider whether this advice is right for you having regard to your individual personal circumstances. You may need financial advice from a qualified adviser. Before you make a decision to acquire or continue to hold an insurance product, you should carefully, and in detail, read the relevant PDS and the policy document (where applicable) for the terms, conditions and any exclusions that apply to that product to ensure that the product is suited to your own individual objectives, financial situation and needs.

2. The information in this FAQ is not, and is not intended to be used as, personal financial advice, legal advice or medical advice for any of the questions covered, nor is it a substitute for any independent professional advice.

3. The information is not intended to influence or encourage you to acquire or hold (or not to acquire or hold) an income protection product or to encourage or discourage you from making a claim under your current income protection policy with your insurer.

4. This information must be read in conjunction with the relevant policy document, product disclosure statement and/or any policy schedule (including any relevant terms, conditions, exclusions and waiting periods contained in these documents).

COVID-19 Income Protection FAQs

If my workplace shuts down or if I get made redundant due to COVID-19, will I be covered with Income Protection?

Income Protection insurance does not cover for workplace closures, loss of employment or quarantine or where there is no sickness or injury. Income Protection insurance is designed to provide income replacement where a customer experiences illness, injury or incapacity which prevents them from working and earning an income. This is also subject to any terms, conditions, waiting periods and exclusions set out in the product disclosure statement (PDS), policy document or any policy schedule.

However, some policies may provide additional redundancy related benefits or options – these are also subject typically to a range of qualifying criteria and exclusions. These details can be found in your Income Protection policy document, product disclosure statement (PDS) and your policy schedule.

Please note, however, that redundancy related benefits or options typically contain a range of exclusions including where ceasing work due to illness (e.g. COVID-19) as well as other qualifying criteria (such as waiting periods).   There may be exclusions for involuntary unemployment cover which provide that redundancy occurring within a period after acquiring the policy (sometimes called a waiting period) is not covered; that is, redundancy needs to occur after the waiting period for the policy to respond. Redundancy cover may also contain an exclusion where an employer has announced it intends to implement redundancies. You should carefully read the PDS and policy before acquiring cover.

 

Last updated: 27/03/2020

Will I be able to claim on Income Protection if I get diagnosed with COVID-19 and am unable to work because I become sick from COVID-19?

Maybe, it really depends on the income protection policy that you hold. All claims will continue to be assessed according to the terms and conditions of your specific policy. In some circumstances and on a case-by-case basis, individual customer policy exclusions may apply. This will have been notified to you at the time of taking out the policy and covered within the policy documentation. We cannot provide advice on whether you could claim on your Income Protection policy as it will depend on the factors above, the terms of your policy, the cause of your condition and any exclusions.

 

Last updated: 27/03/2020

If I don’t have enough paid leave and I need to be quarantined or my workplace is forced to shut down, will I be covered with Income Protection?

Income Protection insurance does not cover for workplace closures, loss of employment or quarantine or where there is no sickness or injury. Income Protection insurance is designed to provide income replacement where a customer experiences illness, injury or incapacity which prevents them from working and earning an income. This is also subject to any terms, conditions, waiting periods and exclusions set out in the product disclosure statement (PDS), policy document or any policy schedule.

To be absolutely sure, it is prudent, and we encourage you to check the terms and conditions of your Income Protection policy document, PDS and your policy schedule regarding the cover that you have with your insurer. You may also contact your insurer if you have any questions or wish to lodge a claim.

 

Last updated: 27/03/2020

Can I still make a claim for consideration with the insurer regarding the above?

Yes, you can always choose to lodge a claim with your insurer. Your insurer will assess your claim in accordance with the terms, conditions and exclusions of your policy, PDS and the policy schedule, and as per their normal claims process. Any claims relating to COVID-19 are no different. If you have been affected by coronavirus (COVID-19), we encourage you to contact your insurance company.

 

Last updated: 27/03/2020

Can I apply for Income Protection Policy now?

Yes, of course you can apply. Your application will be assessed according to the terms and conditions of the product you are applying for and in accordance with the insurer’s underwriting guidelines applicable at the time of your application.

 

Last updated: 27/03/2020

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