Three Things to Think About Before Claiming On Income Protection Insurance

Three Things to Think About Before Claiming On Income Protection Insurance

Today we look at three of the most important.

Will you be able to make a claim?

In order to claim on your income protection insurance policy, your injury or illness will have to meet the definition of disability in your policy.

One important subtlety to be aware of in terms of definitions of disability is that some insurers give you the option of receiving a benefit when you cannot perform your own or usual occupation, whereas others will only pay if you are unable to perform any occupation. If you are in doubt, read your insurance document or contact your insurer for advice.

Can you make a partial claim?

Does your policy have a partial disability option? If you are earning less than your pre-disability income, but still able to do some work, many policies will still allow you to make a claim. Generally you would have to have had a period of total disablement for a set period of time before a partial claim can be made. Here again, check your product disclosure statement (PDS) or call your provider for clarification.

Are you seeing the right doctor?

Almost all income protection insurance policies require you to see a specific doctor for your health assessment in order to have your claim paid.

Remember that you don't necessarily need to keep seeing this doctor if you aren't comfortable with them. If you'll require long-term care for your injury or illness, it is far more important to have access to a doctor close by, that you're comfortable with and who has experience in your particular problem.

Do you have the correct reports from your doctor?

If you've been injured or become too ill to work, there are probably many people asking you for reports that need to be provided to the life insurance company to detail your injury or illness.

However, every insurance report is personalized to your own situation, and it never hurts to bring along a copy of the definition of disability from your policy document, and ask the doctor to address those criteria in his or her report. Otherwise you may have to see the doctor again, or your claim may be delayed.

If you have income protection insurance and you fall sick, it usually makes little sense not to claim - just be aware of the particulars of your policy before you do!

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