What is income protection? (your handy guide)

Work’s not always smooth sailing. Think surprise deadlines, awkward team meetings, and “just a quick favour” tasks that somehow take up your whole afternoon. But what if something bigger got in the way, like being unable to work due to illness or injury? Would your finances be able to keep up?

That’s where income protection comes in, a handy plan B when life throws one of those unexpected curveballs.

So, what is income protection?

In a nutshell, income protection is a type of insurance that can help if you become unable to work for awhile due to illness or injury. 

It’s designed to pay you a portion of your monthly income in the form of a regular monthly payout for a period of time, so you can stay on top of the essentials - like rent, groceries and bills - while you focus on getting back on your feet.

When does it kick in?

Not everything in life is instant (looking at you, 2-minute noodles that take 5). Income protection is the same.

There is typically a waiting period after your illness or injury before payments begin. With ahm Income Protection, you can choose between 30 or 90 days when you take out the policy.

If your claim is approved, your monthly payments can start after your chosen waiting period has ended, and, depending on the benefit period you select and how long you remain unable to work for, could continue until the end of your selected benefit period. 

What is a benefit period, you ask? It’s the max length of time your income protection payments can continue to be paid to you. With ahm Income Protection, you can choose between a 2 or 5 year benefit period^.

What can income protection help cover?

Your income protection payments can help you keep up with things like:

• That mortgage or rent that never takes a holiday
• Power and water bills (because showers and lights are non-negotiable)
• School fees, daycare, or that new lunchbox your kid had to have
• The weekly grocery shop

In short, it can help you keep your life ticking over while you focus on getting back on your feet.

Is income protection just for full-time workers?

Not at all, income protection may be available to people who are:

• Self-employed
• Working part-time
• Freelancing or contracting

You’ll just need to meet certain eligibility requirements, including age, how many hours you work per week and how much income you regularly earn. Your eligibility for income protection will also be impacted by your occupation.

What doesn’t it cover?

Like most insurance, income protection doesn’t cover everything. You generally won’t be covered if:

• You’re off work for reasons not related to illness or injury (e.g. redundancy or resignation).
• You don’t disclose a health condition as part of your application
• You’re injured while participating in excluded activities or circumstances, like criminal acts or self-inflicted injuries.

Note that your health information will determine what cover types you can have and whether any special terms, including exclusions and/or loadings will apply to your cover.

Ready to talk about ahm Income Protection?

With ahm Income Protection, depending on your eligibility and the benefit amount you choose, you could get cover for up to 70% of your monthly pre-tax income* (up to $10,000 per month).

For the full list of what is and is not covered, please refer to the PDS(opens in a new tab).

Just follow the link below, answer a few quick questions, and you’ll get a quote in no time.

Get a quick quote online now(opens in a new tab)

You can also contact us on 1300 867 125 if you have any questions.