For many, income protection is a financial lifeline that ensures their lifestyle, family and responsibilities are supported when they can’t work. Different policies have varying coverage, which means that

understanding the options available – and what they really cover – can be the key to ensuring you’re adequately protected if the unexpected happens.

Anthony Brown, CEO of NobleOak, explains that the insurer has recently enhanced its products to better align with customer priorities, providing more certainty at claim time, greater support during recovery from injury or illness, and more flexible options to help suit a wide range of budgets and life stages.

How does income protection work?

If you suffer an illness or injury which results in your inability to work, after your waiting period (which is the time you wait before you receive benefits), you will receive monthly payments to cover some of your income.

“We refer to income protection as a living benefit – it helps cover bills, mortgage payments and ongoing expenses to maintain your cost of living and lifestyle if you’re unable to work due to illness or injury,” says Brown.

How much income protection do you need and how much does it cost?

Brown explains that the cost of income protection insurance is influenced by several factors based on your personal circumstances and lifestyle, including your age, gender and occupation.

“With NobleOak Income Protection Insurance, you can apply to insure up to 70% of your income, up to a maximum of A$30,000 a month,” he says.

“Opting for a longer benefit period, either 10 years or to age 65, will offer greater financial security but may result in higher premiums,” he adds.

“People in lower-risk occupations may find their premiums more affordable and younger people typically enjoy lower rates.”

Why don’t you just get income protection through your super fund?

Income protection products linked to your superannuation may be simpler but, in some cases, they may not provide adequate coverage, as they need to be aligned to superannuation regulations, says Brown.

The claims process may also be more complicated and take longer, because super funds operate through a trustee who has the final decision on claims.

“In contrast, benefits payable under NobleOak’s income protection insurance are paid directly by NobleOak, based on your paid gross monthly income, and are usually included in your assessable income,” explains Brown.

What is the claim process like with an insurer?

Brown says that one advantage of NobleOak cover is it’s fully underwritten.

“This results in greater certainty at claim time and means our claims acceptance rate is higher than market average for both income protection and life cover.

“We ask all the necessary questions upfront during the application process, ensuring the customer knows everything they are covered for from the start,” says Brown. “Our customers also appreciate that they receive direct access to a case manager and can communicate in the way they feel comfortable. We provide a dedicated case manager based in Australia and prioritise your accessibility to a claims consultant.

“We try to ensure the process is very smooth and personalised, as no two claims are alike,” adds Brown. “Claims can sometimes be assessed within just days, depending on complexity.”

Find out more

NobleOak is a CA ANZ Member Benefits partner. Click here to get a quote today.