Income protection

How does it work?

IP cover gives you regular monthly payments for a set period of time, normally up to two or five years depending on the policy. Sometimes you can get approval for long-term cover, which will run up until you’re 65 years old.

The maximum IP amount you can apply for is either $30,000 per month or 85% of your monthly income – whichever amount is less. If you’re getting another income during your claim period, such as sick leave or WorkCover benefits, then the amount you get could be less.

11% of the amount you’re getting will automatically be paid into your super account rather than as cash in hand, so you’re still saving for retirement despite not having super contributions from an employer during this time.

It’s important to remember that when you take IP out through your super, the cost of the insurance comes out of your retirement savings, which minimises the impact on your household expenses today, but does mean there is an impact on your overall retirement savings.

How do I know if I’m eligible to claim?

You’ll need to fulfil a waiting period of either 30, 60 or 90 days from the date of disablement, which will depend on which type of cover you’ve opted for. You must also be disabled for at least seven out of the first 12 working days of the waiting period to qualify. It’s worth noting that if you have this type of insurance in multiple super funds, you can only claim once!

Read our Insurance Guide for the definition of Disabled in relation to IP or check out how to make a claim for more information on eligibility.

Do I have IP included in my super?

If you’re already a member of Child Care Super, checking whether you have insurance cover is simple. All you have to do is log in to your online account, click on the Insurance tab and review your current cover. If you’re considering making any changes to your cover, we recommend understanding the potential challenges you may have with reinstating your cover later. You can also call our team on 1800 060 215 to chat about how this works or get in touch with a licensed financial adviser for personal advice.