An unexpected illness or injury can put your financial stability at risk. Income Protection Cover can act as a safety net, providing cash flow to help you manage expenses while you focus on recovery.
What is income protection cover in super?
Income protection cover in super can provide financial support if you’re temporarily unable to work due to illness or injury. It provides regular monthly payments to help cover everyday expenses while you recover, once the initial waiting period has been served and up to the maximum benefit period.
At Australian Ethical, this cover is optional for eligible members and sits alongside our other insurance options available in super. To apply, you must be an Australian resident, and meet the age and employment requirements as outlined in our insurance guide.
What you get with us
- Cover for a maximum of 75% of your income plus up to 12% super.
- A range of flexible options to help you tailor your Income Protection Cover.
- Payments deducted from your super, not your bank account.
How income protection cover works
Income Protection Cover pays a monthly benefit if you are unable to work for a period of time due to injury or illness. When you apply, you choose:
- The amount of cover you need
- Your waiting period (30, 60 or 90 days), and
- Your maximum benefit period (2 years, 5 years, or to age 65).
Key terms:
- Waiting period: This is the length of time you must be unable to work due to illness or injury before your benefit payments start.
- Maximum benefit period: This is the longest time the insurer will pay your monthly benefit while you remain unable to work.
The insurer assesses your application, and if accepted, your cover continues as long as your account remains active.
How insurance fees are paid
Fees for income protection cover in superannuation are deducted directly from your super balance, rather than from your take-home pay. This means your cover is maintained through your account automatically, without requiring separate budgeting. In addition, the Fund receives tax deductions for paying insurance fees, and we pass these deductions back to you as a rebate into your super account - helping reduce the overall cost of your insurance.
Your insurance fee depends on factors such as your age, sex at birth, occupation category, cover amount and the waiting or benefit periods you select. You can review these details at any time through your online account, particularly as your circumstances change. You should also consider seeking financial advice before making any changes to your insurance.
How to make an income protection claim
If you need to make a claim, the first step is to contact us so we can explain what is required, conduct an initial eligibility check and get your claim started.
Our claim process is 100% online, allowing you to lodge your claim directly with the insurer where you can track what information you need to submit and follow the status of your claim with the insurer.
If your claim is accepted, payments may help reduce financial pressure while you focus on recovery.
Once approved, payments are made directly to you by the insurer, and a super contribution is paid into your superannuation account. This allows your income and super contributions to continue during your time away from work.
Take the next step with Australian Ethical
Income protection cover can help provide continuity and security when life takes an unexpected turn.
By considering income protection cover as part of your broader financial wellbeing, you can protect your income and your future in a way that aligns with your values.
We recommend you seek financial advice to consider your insurance needs. This information is general in nature and does not take into account your individual objectives, financial situation or needs. Before making a decision, consider whether it is appropriate for your circumstances and read the Product Disclosure Statement, including the Insurance Guide.