MLC Income Protection Insurance

Being seriously unwell is challenging enough without having to worry about your finances. Most of us wouldn’t be able to meet our living expenses for long if we stopped receiving a salary – if your income stops unexpectedly due to illness or injury, how would you and your family cope?

Income protection insurance can protect you and your family by paying up to 75% of your gross wage¹ if you’re unable to work for a period because you’re sick or injured. It generally provides a monthly payment that you can put towards your living expenses for a defined period of time, or until you reach a certain age.

How is MLC’s income protection insurance different?

MLC’s income protection insurance provides monthly payments to replace up to 75% of your income if you’re unable to work due to sickness or injury. MLC will pay a monthly benefit of up to $30,000 for most occupations, and up to $60,000 for some professional occupations (eg. surgeons, accountants and solicitors)².

You can choose from a range of a waiting periods from 14 days to two years, and access up to 12 times your monthly benefit for rehabilitation expenses (unless your income protection policy is part of your superannuation)². MLC income protection also includes a death benefit of up to $60,000².

Will the cost of my MLC income protection policy change while I hold it?

With MLC, there are two premium structures to choose from²:

• Stepped premiums – which change each year as you get older. This is to reflect the increasing likelihood of a claim as you age.
• Level premiums – which spread out the increasing likelihood of a claim as you age. Under this structure, premiums are higher than stepped premiums at the start of the insurance, but less than stepped premiums in the later years.

Regardless of the approach you choose, your premiums may increase when you renew your insurance each year due to rate increases, CPI increases, or policy fee increases².

I work in a dangerous job – is MLC income protection suitable for me?

MLC offers three types of income protection insurance²:

• Income Protection – provides a range of benefits and options for people in most occupations.
• Income Protection Platinum –  provides a more comprehensive range of benefits and options for people in most occupations.
• Income Protection (Special Risk) – provides a range of benefits and options for people with hazardous occupations. After the first three years, your income protection insurance will be reviewed annually, and may not always be renewed.

Do I really need income protection insurance?

Even if you don’t have a partner or dependents, it’s worth considering income protection as a safety net. As a single person, your expenses are likely to be lower than if you had a family, but you still have bills to pay – how long could you afford to maintain your lifestyle without a salary?

If your financial commitments aren’t significant, you can choose a lower level of cover and save on your premium. An income protection policy will give you protection, and allow you to maintain your financial independence if you’re unable to work because you’re sick or injured.

How much cover do I need?

While most of Australia’s big insurers offer income protection products, each policy will be slightly different, with its own definition of disability and range of benefits¹.

Different policies may also offer varying waiting and benefit periods.

When it comes to the right level of cover for you, you should consider the amount you spend on your rent or mortgage, education, transport, bills and general living expenses each month.

Is income protection insurance a good idea if I’m self-employed?

Income protection insurance is an important consideration for anyone who relies on an income, but especially for self-employed workers, small business owners or professionals whose business depends heavily on their ability to work².

Your expenses won’t stop just because you do; income protection can give you some peace of mind during an otherwise challenging and stressful time.

Does income protection insurance cover redundancy?

Income protection insurance doesn’t cover redundancy, but some insurers offer to waive your premiums for a period of time if you’re made redundant as an option with their income protection policies, for an additional cost¹.

*iSelect is partnered with Lifebroker (AFS Licence number: 400209) to help you compare a range of Income Protection Insurance policies. iSelect earns a commission from Lifebroker for each customer referred through the website or contact centre. Lifebroker do not compare all life insurers or policies in the market.

iSelect Life Pty Ltd – ABN 89 124 304 347, AFS Licence Number 331128. Any advice provided by iSelect is of a general nature and does not take into account your objectives, financial situation or needs. You need to consider the appropriateness of any information or general advice iSelect gives you, having regard to your personal situation, before acting on iSelect’s advice or purchasing any policies. You should consider iSelect’s Financial Services Guide which provides information about iSelect services and your rights as a client of iSelect.