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