Making an income protection (IP) claim

We aim to finalise claims as quickly as possible. In most cases, IP claims are finalised within two months after all the necessary documentation has been submitted. However, the timeframe may vary depending on the complexity of the claim and the availability of information required from you, your employer, and your treating doctors and specialists.

IP benefits are paid as taxable income and, just like salary and wages, they attract Pay As You Go (PAYG) tax. Any tax that applies is deducted from your IP benefit before it’s paid to you and sent to the Australian Taxation Office directly.

Income tax can be complex and depends on your personal financial circumstances. We recommend getting financial advice to better understand how your benefit payments may be taxed. One of our licensed financial planners would be happy to help you.

The amount of IP benefits payable to you will be reduced by the amount of any of the following benefits you’re entitled to as a result of your inability to work:

• IP benefit payments from another insurance policy or super fund
• sick leave payments made to you by your employer
• court or out-of-court settlements relating to loss of income or loss of earning capacity that are directly or indirectly related to the illness or injury that forms the basis of your benefit being paid
• worker’s compensation or motor accident compensation payments, or
• accident compensation or other similar benefits paid under State, Territory or Federal legislation, such as the Department of Veterans’ Affairs.

This is the time you need to wait before your IP claim will be assessed. Your waiting period may be 30, 60, or 90 days and begins from the date your doctor certifies you were totally disabled on that day.

Once your claim is accepted, payments are made from the end of the waiting period and are paid in the following month, including any back pay owed.

If you return to work during the waiting period and are unable to continue due to the same illness or injury, your original waiting period will still apply, provided you worked for no more than 10% of the waiting period.

This is the maximum period your IP benefit can be paid, as long as you continue to meet the eligibility requirements. Your benefit period will be for 2 years, 5 years, or until you turn 65, when the benefit will end

Andrew, 52, has been working as a part-time delivery driver for the past seven years. He stopped work due to back pain and was off work for six weeks. 

During this time, Andrew undertook regular physiotherapy and medication and made steady progress in his recovery.

Andrew holds IP cover with Equip Super, which provides a 2-year benefit period and a 90-day waiting period.  

Does Andrew meet the definition?

While Andrew may have met the definition of disability during his time off work, he did not receive any IP payments. This is because he returned to work and resumed his usual duties two months after stopping work, which was within the 90-day waiting period.

^{For more information, visit equipsuper.com.au/claims or contact us.}

^{The sample case studies are provided for illustrative purposes only and are not representative of a member’s actual experience in Equip Super or any other fund. The benefits that a member may receive will depend on the individual and specific circumstances that comprise a member’s claim.}

^{Insurer is MetLife Insurance Limited (ABN 75 004 274 882 AFSL 238096). Please refer to the Insurance in your super guide for more information available at equipsuper.com.au}