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What is Income Cover?

Income Protection Insurance pays a monthly benefit while you are unable to work as a result of injury or illness. By replacing your regular income, Income Cover payments can help you and your family maintain a level of financial normality. Income Cover gives you the financial freedom to focus on your recovery or treatment, without worrying about your regular expenses.

Income Cover protects against:

  1. Accidents
  2. Mental Illness
  3. Musculoskeletal Disease
  4. Cancer
  5. Heart Disease
  6. Stroke

Income Cover from one insurer may be totally different compared to another insurer. It really is important to know what type of cover the core policy will provide by speaking to an expert.

Type of Income Cover Options:

There are two different types of Income Cover policy options:

Agreed Value

An Agreed Value Income Cover policy pays a monthly benefit based on the policyholder’s income declared and verified at the application stage.


An Indemnity Income Cover policy assesses the monthly benefit payable at claim time.

If you would like more information about the difference between Agreed Value and Indemnity Income Cover policies please feel free to take a look at our Article Section > Agreed Value Vs Indemnity.

There is a third option for Income Cover which is a Accident & Sickness Only Income Cover policy. This option offers policyholders the least amount of income coverage when compared to agreed value or indemnity policy options.

Income Cover Insurance Waiting Periods

The Waiting Period is the time between becoming unable to work and receiving your first income cover payment. You can generally choose a waiting period between fourteen days and two years. A shorter waiting period generally means a higher premium.

Waiting Period(s):

  1. 14 Days
  2. 60 Days
  3. 1 Year
  4. 21 Days
  5. 90 Days
  6. 2 Years
  7. 30 Days
  8. 180 Days
  9. To Age 70

Income Cover Benefit Periods

The Benefit Period is the period during which you receive your income cover payments. You can generally choose between a two or five year benefit period or a benefit period up to age 70.

Benefit Period(s):

  1. 1 Year
  2. To Age 55
  3. 2 Years
  4. To Age 65
  5. 5 Years
  6. To Age 70

Type of Premium Options

Stepped Premium

A Stepped Premium is based on the policy holder’s age and increases as you get older. The stepped premium option is generally more affordable in earlier years when the policy holder is younger and less affordable in later years when the policy holder is older.

Level Premium

A Level Premium is based on the average policy premium and is not linked to the life insured’s age. This premium option is usually a less affordable in earlier years when the policy holder is younger but a lot more affordable when the policy holder is older.

Income Protection insurance pays a monthly benefit of up to 75% of your salary while you are unable to work as a result of illness or injury.

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