Income Protection Insurance

For anyone who depends on their personal income, the loss of that income through illness or injury is one of the larger financial exposures they carry. Income protection is designed to answer it by replacing a portion of income, commonly paid as a monthly benefit, while the insured person is unable to work due to illness or injury. It does not replace income in full and several levers shape how it responds.

The waiting period sets how long you wait before benefits start. The benefit period sets how long benefits can be paid. Your occupation and your income at application both shape the cover an insurer will offer and how a claim is assessed. For self-employed clients and business owners, who often have no employer salary continuance behind them, income protection is frequently the cover that carries the personal income exposure and Business Expenses cover is an adjacent option that can help meet fixed business costs during a period of disability.

DKG is an advisory-led general insurance broker with specialist Life and People Risk capability. We advise before we place. We explain how income protection sits alongside any employer salary continuance, what underwriting will look at and how the waiting and benefit periods change the cover. We set honest expectations up front and cover is always subject to policy wording.

What are the benefits?

• A monthly benefit designed to replace a portion of your income while illness or injury stops you working, subject to policy wording.
• Cover you own personally, so it stays with you rather than depending on a particular employer.
• Flexibility in the waiting period and benefit period, so the cover can be structured around your circumstances and other arrangements.
• Particular relevance for self-employed clients and business owners who carry their own income exposure.
• An adjacent option in Business Expenses cover, which can help meet fixed business costs during a period of disability, subject to its own wording.
• An adviser who explains how it interacts with employer salary continuance and acts as your advocate if a claim is made.

What can it cover?

Income protection is individually owned and underwritten. In general terms and subject to occupation, income, underwriting and policy wording, cover can be designed to provide:

• A monthly benefit, commonly a proportion of pre-disability income, while the insured person is unable to work due to illness or injury.
• A benefit that starts after a chosen waiting period and is payable for a defined benefit period.
• Cover structured around your occupation and income at application.
• An adjacent Business Expenses option for self-employed clients, designed to help meet fixed business costs during disability, subject to its own terms.

The waiting period, benefit period, occupation and income all shape the cover and the premium. We work through those levers with you before any cover is placed.

What usually isn’t covered?

Cover responds to the policy definitions and the events the policy is written to answer. In general terms and subject to policy wording, the following are usually not covered:

• Unemployment or redundancy, which are not a sickness or injury event.
• Periods that fall within the waiting period.
• Undisclosed pre-existing conditions.
• Claims that fall outside the policy definition of disability.

What a policy covers and excludes is determined by the insurer and the policy wording. The waiting period, the benefit period and the disclosure made at application all shape how a policy responds and we explain that before cover is placed.

How DKG supports you

We start with your reliance on personal income, then help you understand how income protection is structured and how the waiting and benefit periods change the cover. For self-employed clients and business owners, we explain how it sits alongside any employer salary continuance and where Business Expenses cover may have a role. We are clear that individual income protection and employer-funded group salary continuance are different covers. We do not provide personal financial, legal or tax advice on these life-risk lines and we refer those questions to the appropriate adviser.

When a claim is made, income protection claims can involve medical evidence, the policy definition of disability and the waiting and benefit periods. We act as your advocate from notification through to resolution. We help prepare and present the claim, work through the definitions and evidence and manage insurer engagement. The insurer and the policy wording determine the outcome and we make no representation as to claim results.

DKG’s Life and People Risk practice is led by Marnie Maloney, Head of Life and People Risk. She brings more than 20 years of experience in life insurance and financial advice, with deep expertise across personal risk advice, business succession planning and corporate protection. To review your income protection cover, or to understand how it differs from employer salary continuance, contact Marnie via email or phone on 1800 252 926.

Related services

• Employer Group Life and Salary Continuance Insurance (the employer-funded distinction)
• Total and Permanent Disability Insurance
• Personal Life Insurance
• Trauma Insurance

Other cover may be considered and additional exclusions may apply.

Important note− The information provided is general advice only and has been prepared without taking into account your objectives, financial situation or needs. When making decisions about income protection insurance, please consider the Product Disclosure Statement.