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Income Protection basics

Income Protection FAQs

  • How long do claim payments last?

    The usual choices are 2 years, 5 years, until age 65, or until age 70. Choosing a payment period of 5 years means that you'd receive claim payments for a maximum of 5 years. If you choose a "till age 65" payment period, your payments would continue until you reach age 65 (as long as you're disabled during that time).

  • What's a Wait Period?

    Your income protection payments won't start until after your Wait Period. You choose the waiting period (though there is often a minimum of a month). The waiting period that's right for you depends on your situation and how long you could realistically get by without an income (for example do you have savings or an emergency fund you could use to tide you over?).

  • What if my income changes?

    If your income changes, it's best to revisit the amount you have insured and check if it still matches your situation.

  • Do income protection plans have exclusions?

    Yes. These vary depending on the plan, however a typical list of exclusions might include self-inflicted harm, criminal activity, pregnancy or complications thereof lasting fewer than 90 days after the birth.

  • How much does income protection cost?

    This is based on a range of things. Some are to do with your situation (for example your age, gender, occupation, and health). Others are to do with the actual policy options you choose (for example your insured amount, Wait Period, and Payment Period).

  • Is it true that income protection premiums are tax deductible?

    The income protection plans on LifeDirect are all tax deductible, and the claim payments that you receive are taxed as income.

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