Income Protection insurance

Income Protection is designed to bridge the gap where you are unable to work and are receiving reduced or no income as a result of a temporary disablement.

This insurance is separate from our Death Only and Death and Total & Permanent Disablement (TPD) insurance. You can apply for Income Protection in addition to the Death Only or Death and TPD cover.

The maximum benefit for Income Protection insurance is 85% of your pre-injury or illness salary (this is made up of 75% paid to you as income and 10% superannuation contribution paid into your LUCRF Super account), and is capped at $20,000 cover per month.

Income protection insurance is offered in weekly benefit units of $100 (see premiums table below). All benefits are payable after your choice of a 30/60/90-day waiting period.

How Income Protection works

Income Protection insurance depends on various factors such as:

Age
Gender
The type of work you do, and
The waiting period you choose.

It is available in three work categories, depending on the type of work you do. Your job and role will be confirmed before any insurance claim is accepted.

Work categories

White Collar

For professional, clerical or administrative white collar workers who do not perform any manual work, including sales people not involved in deliveries.

Light Blue

For skilled and unskilled workers, performing light manual work and involved in non-hazardous industries and/or tasks. Light blue also covers supervisors of heavy blue workers or fully qualified tradespeople (details of qualifications must be provided).

Heavy Blue

For skilled or semi-skilled manual workers and heavy machine operators who are not exposed to high risk accidents, health hazards or who do not participate in high risk occupations are classified heavy blue.

Please note: Unskilled workers or unskilled labourers performing heavy blue tasks are not included in the occupation class and any cover requested needs an assessment of occupational risk by the Insurer. Please contact us if you are an unskilled worker and would like more information about income protection insurance.

Eligibility

You are eligible to apply for cover if you meet the following criteria:

You are between 15 and 64 years of age (cover stops at age 65), and
You are working a minimum of 15 hours per week on a permanent full-time or permanent part-time basis (not including casuals) for a LUCRF Super employer

You are a contractor working at least 15 hours per week and on a fixed-term contract of at least 12 months
You are an Australian Citizen or Australian Permanent Resident as defined in the Migration Act 1958 (Cth), and
You are not an excluded member (see exclusions below).

Income protection benefits cease on the earliest of these dates:

The end of the two-year benefit period
Reaching age 65
Death, or
When you are no longer disabled.

Benefit payments

Income protection benefits are payable when, as a result of injury or illness, you are:

Incapable of performing one or more of the duties of your regular occupation necessary to produce income, as confirmed by a medical practitioner; and
Not engaged in any occupation; and
Under regular treatment and following the advice of a medical practitioner.

Partial benefits are also payable when all of the following apply:

You have been totally disabled:
1. for a period during which a total disablement benefit has been paid, or
2. for at least 7 days out of 12 consecutive days during the waiting period.
You then return to work, or are then capable of returning to your usual occupation, but only in a limited capacity; and
The income you are earning, or are capable of earning, is less than your pre-disablement income, due to the injury or illness causing total disablement.

When are benefits not paid or reduced? (exclusions)

Benefit payments will not be made if the event giving rise to the claim is caused directly or indirectly by:

War, or act of war
An intentional self-inflicted act, or
Pregnancy, unless you are disabled for more than three months after the end of the pregnancy, in which case the waiting period is deemed to start on the later of the date total disablement begins and the end of the pregnancy.

Benefit payments may be reduced or refused:

If the premium has not been paid
Where you do not provide notice as soon as reasonably possible after your disability starts, to the extent that assessment or management of your claim is prejudiced, or
While you are imprisoned or the subject of a custodial sentence as a consequence of being convicted of committing a criminal offence.

The table below shows Income Protection insurance - Weekly Premium rates (in dollar amounts) per $100 weekly benefit.

Age (at next birthday)	30 day waiting period		60 day waiting period		90 day waiting period
Age (at next birthday)	Male	Female	Male	Female	Male	Female
White Collar
16–20	0.23	0.23	0.12	0.13	0.08	0.09
21–25	0.24	0.24	0.12	0.13	0.08	0.09
26–30	0.25	0.27	0.13	0.15	0.08	0.10
31–35	0.31	0.35	0.16	0.20	0.08	0.11
36–40	0.41	0.48	0.21	0.28	0.11	0.15
41–45	0.56	0.65	0.30	0.39	0.17	0.24
46–50	0.79	0.88	0.43	0.53	0.28	0.37
51–55	1.15	1.19	0.68	0.77	0.49	0.58
56–60	1.75	1.65	1.04	1.07	0.87	0.85
61–65	1.99	1.73	1.22	1.11	0.99	0.80
Light Blue
16–20	0.40	0.43	0.24	0.26	0.16	0.18
21–25	0.42	0.45	0.25	0.27	0.17	0.18
26–30	0.45	0.51	0.27	0.31	0.16	0.21
31–35	0.54	0.67	0.32	0.40	0.17	0.22
36–40	0.72	0.91	0.43	0.56	0.22	0.30
41–45	0.99	1.24	0.61	0.79	0.35	0.48
46–50	1.39	1.67	0.87	1.07	0.56	0.75
51–55	2.03	2.27	1.37	1.54	0.99	1.17
56–60	3.10	3.15	2.10	2.15	1.76	1.72
61–65	3.52	3.29	2.46	2.23	2.00	1.61
Heavy Blue
16–20	0.59	0.63	0.34	0.38	0.21	0.23
21–25	0.61	0.65	0.36	0.39	0.22	0.24
26–30	0.66	0.74	0.39	0.45	0.21	0.27
31–35	0.79	0.97	0.47	0.59	0.22	0.29
36–40	1.05	1.33	0.62	0.81	0.29	0.39
41–45	1.44	1.81	0.89	1.15	0.46	0.63
46–50	2.03	2.44	1.26	1.56	0.74	0.98
51–55	2.96	3.30	1.99	2.24	1.30	1.54
56–60	4.51	4.58	3.05	3.13	2.30	2.25
61–65	5.13	4.79	3.57	3.24	2.61	2.10

The example below demonstates how to work out the weekly premium rate for this insurance, depending on the amount of cover you wish to be insured for.

If you have any further queries regarding our Income Protection insurance, please contact us directly on 1300 130 780.