Income Care is a valuable form of insurance that provides up to 75% of your income if your client is sick or injured and are permanently or temporarily unable to work. Premiums are generally tax deductible. Benefits are normally paid monthly and like income, are generally subject to tax. These products are held outside of super.
Income Care Plus is offers all the protection of Income Care with an additional 11 benefits such as Home Care benefit, Death benefit and Family Support benefit.
Income Care Platinum offers all the protection of Income Care Plus with the three-tier definition.
Claims testimonial: John Holmes's story
At a glance
- Choice of Indemnity, Extended Indemnity, Agreed Value or Guaranteed Agreed Value:
- Indemnity, the monthly benefit will be the lesser of 75% of your average monthly income 12 months before the claim and the amount of your cover
- Extended indemnity, the monthly benefit will be the lesser of 75% of your highest monthly income in any consecutive 12 months period in the 36 months before the claim and the amount of your cover
- Agreed Value, as long as income earned in the 12 months prior to the application date supports the insured amount, then regardless of any subsequent reduction in the life insured’s income, the benefit paid will be for the amount insured for
- Guaranteed Agreed Value, provided this is reflected in your client’s policy schedule, we pay the monthly benefit chosen and don’t ask your client to justify that amount when they claim
- Choice of 14 days or 1, 2, 3, or 6 months or 1 or 2 years waiting period
- Stepped premium type:
- Minimum entry age 17
- Maximum entry age 60 (or 63 for benefit period to age 70)
- Level premium rate type:
- Minimum entry age 17
- Maximum entry age 54
Note: Aviation, Specialist Risk and different expiry ages have different eligibility entry age ranges, please read the PDS
- Choice of cover expiry on anniversary before life insured’s:
- 60th birthday
- 65th birthday
- 70th birthday.
- Choice of benefit period:
- two years
- five years
- to the cover expiry date which applies i.e. the policy anniversary before the insured's 60th, 65th or 70th birthday
- Total Disability benefit: pays a monthly benefit if the life insured suffers a loss of income because they can’t do any work at all due to disability
- Partial Disability benefit: pays a partial monthly benefit if, due to disability, the life insured can only work in a reduced capacity and suffers a reduction of income
- Boosted Total Disability benefit: if the life insured is totally disabled by a serious medical condition we increase the monthly benefit by one third so it more closely reflects 100% of the life insured’s income rather than just 75%
- Recurrent Disability benefit: allows continuation of the original claim without having to satisfy the waiting period again if the life insured suffers the same sickness or injury again
- Medical Professionals benefit: pays a lump sum benefit if the life insured is a medical professional who has to stop work because of an HIV or hepatitis infection
- Reward Cover benefit: after three years of holding the income protection we will provide $50,000 Accidental Death Cover. We then increase the Accidental Death Cover by $10,000 on each policy anniversary until the cover reaches $100,000
- Rehabilitation benefit: pays a benefit for up to 12 months if the life insured is totally disabled and participates in an approved occupational rehabilitation program
- Waiving premiums: no income protection premiums payable while a Total or Partial Disability benefit is being paid or up to six months for defined personal considerations
- Unemployment Cover benefit: pays a monthly benefit for up to three months to help the life insured cover minimum monthly repayments for a CBA Group loan where they’ve been unemployed for more than 60 consecutive days
- Death benefit: pays a lump sum of the lesser of four times the monthly benefit and $75,000. Your client doesn't have to be on IP claim to obtain this benefit. This is only available under Income Care Plus and Income Care Platinum.
Download the PDS for a full list of benefits >
When is a benefit paid?
- We’ll pay the Total Disability Benefit if the insured can’t do any income earning work at all for longer than their nominated waiting period
- If the insured suffers a serious medical condition, we recognise that they will most likely never return to work and in these circumstances we could pay up to 100% of the pre-disability income
- We’ll pay the Partial Disability Benefit if the insured can only work in a reduced capacity after the waiting period has ended.
NOTE: for Income Care Platinum, the above applies even if your client can work in a reduced capacity.
Joanne is a vet, married with two children. Joanne and her husband have a significant mortgage and other expenses to pay. Joanne's financial adviser recommended that she take out Income Care Platinum cover as part of her financial plan.
When Joanne's adviser explained that her premiums were tax deductible, she decided to take out the recommended insurance.
Two years later, Joanne was diagnosed with breast cancer, which put her out of work for 12 months. But thanks to her monthly Income Care Platinum payments, she was able to continue paying her mortgage, as well as covering her car loan repayments, her children’s school fees and the cost of a house cleaner.
The examples used are for illustrative purposes only.
*Income Care Super’s features and benefits vary from Income Care and Income Care Plus.
Split IP now available!
Split IP cover allows customers to enjoy the benefits of holding cover both inside and outside the superannuation environment, providing optimal access to benefit payments. The majority of the premium is paid from super, with the balance paid from cash sources.
The cover held inside super is governed by SIS regulations, which does not allow benefits such as the unemployment benefit for CBA loans, medical professionals benefit and rehabilitation benefit to be paid. Using Split IP allows customers to access these types of benefits via the cover held outside super.
CommInsure offers Split IP with all levels of cover: Income Care Platinum, Income Care Plus, Income Care, and Essential Cover (Accident Only).