Your ability to earn is your biggest asset. If you are unable to work due to illness or injury, you’ll want to know your finances, family and lifestyle are taken care of. Income protection insurance provides regular monthly payments, replacing a portion of your income so you can meet your ongoing financial commitments.

There are three Income Protection benefit options:

Each option varies slightly regarding the proportion of your income that can be insured and how the monthly benefit payment is calculated at claims time:

• Agreed Value Cover – benefit payments are based on an amount agreed at the time the cover is taken out. This provides you with certainty about the amount of monthly claim benefit payments in the event of a claim. The Agreed Value benefit is based on a maximum 62.5% of your taxable income
• Indemnity Cover – benefit payments are based on a proportion of your income at the time you make a claim. The Indemnity benefit is based on a maximum 75% of your taxable income
• Loss of Earnings Cover – this option allows you to choose how your benefit payments are calculated at the time you make a claim. This can be either agreed value or indemnity, whichever is higher. This option provides flexibility if your income fluctuates

Your monthly benefit payment is reduced (or offset) by the amount of any other income replacement or mortgage protection benefits that you are entitled to receive, as well as any income you receive from being actively involved in a business and sick leave payments.