The household needs protection from loss of income as a result of the Insured becoming disabled through accident or illness. Income Protection or Loss of Earnings insurance provides a guaranteed monthly payment to the insured person after the nominated waiting period, which can be 30, 60 or 90 days, until they are aged 65 or 70.

Income Protection plans provide up to 75% of the insured person’s income until the sick or disabled party is able to resume normal employment, either full or in part.

A Loss of Earnings policy makes monthly payments “in advance”, with immediate effect from the expiry date of the nominated waiting period.

Loss of Earnings “plus” policies provide a more generous calculation for partial recovery and nominate a maximum “Agreed Value”, irrespective of what the disabled person’s income is at the time of the loss.

In the event of an ACC claim, any benefit from ACC is offset against entitlements through the policy.