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Income Protection Cover

One of the best ways to appreciate the importance of your salary is to imagine it was gone.

Without it, how long would you be able to able to make your mortgage or rent payments and pay your other bills without feeling the pinch?

Budget Direct’s Income Protection Cover replaces up to three-quarters of your earned income if you suffer a serious illness or injury and cannot work in your usual occupation.

It allows you to concentrate on getting better – without worrying about how you or your family are going to get by.

What’s included

If you suffer a serious illness or injury and are unable to work for the duration of the waiting period and beyond, we’ll pay you a monthly benefit until you are well enough to return to work or your cover ends. We offer:

  • Cover for up to 75% of your gross income

    Choose a benefit amount (up to 75% of your salary or $10,000 per month, whichever is the lesser); you may wish to consider how much money you’ll need to cover your housing, education, transport, food, utilities, and other living expenses.

  • 1-, 2- or 5-year benefit period

    This is the maximum length of time you would receive a benefit if you were unable to work due to illness or injury. Take your pick.

  • Choice of waiting period

    Select either a 30- or 60-day waiting period. If, after serving the waiting period, a doctor confirms you’re still too unwell to return to work, we’ll start paying you your monthly benefit.

  • No premiums while you claim

    While receiving a monthly benefit, you won’t have to pay any income-protection premiums.

  • Guaranteed cover until the age of 65

    Unless your cover ends earlier, we guarantee to automatically renew it every year until you turn 65.

What’s not covered

There are some circumstances that are not covered by Income Protection Cover - these are called ‘exclusions’.

For example, the policy does not cover loss of income due to redundancy (also known as involuntary unemployment); or serious illnesses or injuries resulting directly or indirectly from:

  • a mental disorder or illness
  • normal pregnancy (e.g. morning sickness and back pain)
  • self-inflicted harm, including attempted suicide
  • consumption of drugs or alcohol.

Find out more

The information on this page is a summary only. For more details about Income Protection Cover, including the terms, conditions, limits and exclusions that apply, please read the product disclosure statement.

Get a quote

You can get an Income Protection Cover quote online in 60 seconds – you won’t need to fill out complicated forms or have a medical check-up or blood test.

We’ll ask you a handful of questions about, among other things, your health, occupation and lifestyle. This will help us to determine whether we’re able to offer you cover.

Or, if you’d prefer, you can get a quote by calling us on 1800 555 048.

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Make a claim

We understand life insurance claims can be stressful, so we try to deal with each claim as quickly, efficiently and compassionately as we can.

Make a claim on your Income Protection Cover policy

Frequently asked questions

What’s considered to be a ‘serious illness or injury’?

One that results in you being unable to work and earn an income; and requires ongoing medical treatment. The illness or injury must be certified by your medical practitioner and confirmed by one or more medical specialists nominated by us.

How much cover do I need?

It’s up to you. In deciding what monthly benefit amount to choose (between $1,000 and $10,000, depending on your income level), you may wish to consider how much money you’ll need each month to cover your housing, education, transport, food, utilities and other living expenses.

What’s the ‘waiting period’?

The waiting period is the amount of time you would have to wait before qualifying for the benefit. If, at the end of the waiting period, a doctor confirmed you were still too unwell to return to work, we would begin paying you your benefit monthly in arrears. You can select either a 30- or 60-day waiting period.

When would I receive my benefit?

We would pay you your benefit monthly in arrears – in other words, you would receive your first benefit payment 30 days after serving out your waiting period. For example, if you had selected a 30-day waiting period, you would receive your first payment 60 days after lodging your claim.

Is income protection insurance taxed?

In most cases, the premiums you pay are tax-deductible, however any monthly benefits you received would be taxed as income. For more information, talk to an accountant or tax agent.

See all life insurance FAQs

Other types of cover

Income protection insurance does not cover every event that could result in you being unable to work and earn an income.

As well as considering Income Protection Cover, you may wish to look into our other types of life insurance.

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Get a 10% Existing Customer Discount

A 10% existing customer discount for new Budget Direct Life Insurance policies.