Income Protection Insurance FAQs

Income Protection Insurance provides you with monthly payments if you can’t work due to a serious sickness or injury. The benefits are paid as a regular monthly income for a specified period, while you cannot work.

NobleOak’s Income Protection Insurance can cover you for up to 70% of your regular, pre-tax income to a maximum of $30,000 per month (subject to certain limits). Within these guidelines, the Monthly Benefit is determined, based both on your regular income and your current health, occupation and lifestyle.

The great news is you’re able to choose your waiting period. This is the period before you become eligible to receive a Monthly Benefit. At NobleOak there is plenty of choice, with 30, 60, 90 or 730 days available. If you choose a longer waiting period, for example the 90 day Waiting Period, your premiums will be lower, because you are effectively self-insuring for those first 90 days of disability. It’s important to consider when choosing a waiting period how long you’d be able to manage without an income if you were unable to work.

You can then choose a Benefit Period. This is the maximum amount of time that you will receive a monthly payment while unable to work solely due to sickness or injury. At NobleOak, you have the choice of a 1, 2, 5 or 10-year Benefit Period, or a Benefit Period until you are 65. Find out more about how income protection works here.

Income Protection Insurance pays a monthly benefit of up to 70% of your regular pre-tax income if you can’t work due to a serious illness or injury.  This is known as a replacement ratio of your regular income. This is based on the first $25,000 per month (or $300,000 per annum).  If you earn over $25,000 a month, then a replacement ratio of 50% is applied on the amount above $25,000.  The maximum sum Insured you can set up is $30,000 and this is capped.

Having this type of cover in place can help ensure an income stream and income replacement for you and your family or dependents to reduce financial burden, if you’re left without an income solely due to an injury or illness.

For example, your monthly benefit payments may be used to help ensure:

• You can keep up with your rent or mortgage payments
• You can cover your ongoing bills and everyday expenses
• You have income replacement after you have exhausted your sick leave
• If you are self-employed, it can help with ongoing expenses
• You don’t need to exhaust any savings or borrow more money; and
• You can recover in the time required.

How Income Protection Insurance can help

Case study (based on a real-life situation, but fictional people): Male, age 40, Occupation: Accountant

Robert, aged 40, is a qualified Accountant. He is married to Catherine, also an Accountant, and they have three children. Catherine also works, and their family is reliant on both Robert and Catherine’s incomes.

Robert was diagnosed with Non-Hodgkin’s Lymphoma. Unfortunately, he needed to undergo several rounds of chemotherapy, meaning he was off work for several months.

Robert attained NobleOak Income Protection Insurance prior to getting married as he took out a mortgage to buy a property.

Robert made a successful claim on his policy and started receiving monthly benefit payments after the conclusion of the 30-day waiting period.

After five months, Robert returned to work on a part-time basis, and his cover continued to provide ongoing partial monthly benefit payments to assist while he returned to full work duties three months later. This means that when Robert was out of action and recovering, he was paid total disability benefits representing 70% of his monthly income (10,000 x 70% =$7,000). When he returned to partial work after five months, he was paid a partial disablement benefit that considered his post disability income.

Robert was also able to tap into the recovery and rehabilitation support that eventually allowed him to go back to work full time and recover in the time he needed.

Income Protection Insurance enabled Robert and Catherine to meet their monthly mortgage payments and covered the costs of their essential school and household expenses. More importantly, it allowed Robert to recover and feel supported through his illness and treatment.

The premiums paid over the years were also tax deductible.

Income Protection insurance can be important even if you are employed by a business as your employer only covers sick leave for a certain number of days.  Also, worker’s compensation insurance is paid out only if you have a work-related injury and it does not pay for a serious sickness such as cancer.

If you are self-employed, unless you have a savings fund that covers you for extensive time off work due to injury/illness, then you will not have any coverage.

Case study (based on a real-life situation but fictional people): Caroline age 40, Occupation:  Accountant and Single Mum

Caroline sets up her own accounting practice and her children are aged 5, 12 and 15. Caroline took out NobleOak Income Protection and Business Expenses cover when she set up her business.

Caroline hurt her back doing Pilates/yoga and will need surgery.

While Caroline is out of action, her Income Protection will pay 70% of her regular income and allow her to recover while she awaits surgery.

Her cover has allowed her to rest while she waits for surgery, receive total disability and then partial disablement benefits after the surgery and gradually return to work. In that time, Caroline was able to use some of the funds to employ a locum accountant to help her with the running of the business.

This means Caroline has been able to heal, get surgery and recover in her own time, be there for her children and keep her business running, removing the financial pressure and burden.  Caroline also accessed the rehabilitation and recovery support benefit to help her get back to participating in Pilates/yoga to help her with her ongoing mental and physical health

High cover levels for your Income Replacement

You can apply for up to a maximum of $30,000 per month, without having to go through a financial adviser. This is based on your regular income and income replacement is based up to 70% of the first $25,000 (or $300,000 per annum).

Whilst we consider all income at underwriting, we don’t offset passive income at claim time. We have an excellent acceptance rate of over 90%, well above the industry average of 87%.

Fully underwritten cover

We take the time to get to know you upfront with a number of health and lifestyle questions, so we can tailor your cover to your individual circumstance. That gives you more certainty at claim time.

Generous age limits

You can apply for NobleOak’s Income Protection product up to the age of 60.

New benefit periods

You can choose your benefit period based on a number of options. We have recently introduced both a one-year benefit period and a ten-year benefit period to help meet our customer’s needs and individual circumstances. We also offer two, five and up to age 65 benefit periods.  While longer benefit periods will offer you more financial protection over time, the premiums will be more expensive, so it depends on your individual circumstances as to what will suit you best.

New waiting periods for flexibility

You’re able to choose your waiting period. This is the period before you become eligible to receive a Monthly Benefit. At NobleOak there is plenty of choice with 30, 60, 90 or 730 days available. If you choose a longer waiting period, for example the 90-day waiting period, your premiums will be lower, because you are effectively self-insuring for those first 90 days of disability. It’s important to consider when choosing a waiting period how long you’d be able to manage without an income if you were unable to work.  You can choose the waiting period that makes sense for you.  You’ll need to consider the amount of time you can carry on with no benefit. The longer your benefit period, the more you can reduce your premium, but it will mean you wait longer to get paid i.e. 30, 60, 90, 730 day waiting periods.

Competitive premiums

We are committed to providing value for money, and we carefully manage our costs to keep our premiums as low as possible.

No switch Total Disability cover

This means that if you have long term Income Protection such as cover with a 10-year benefit period or to age 65 and you need to claim and are totally disabled due to a sickness or injury, you are always assessed against your own occupation rather than any occupation. This means if you are on claim for a long time, your definition will stay the same.

Future Insurability

We have introduced more situations (partly associated with housing affordability in Australia and cost of living) where you can increase your cover without further underwriting if you are eligible. This means the income replacement evolves with your needs.

A maximum of $2,500 increase applies.

Help to manage premiums when most needed

Features like Premium Pause and Waiver of Premium if involuntarily employed allow you to stop paying premiums for a period of time. This allows you to keep your cover in the long-term without being re-underwritten.  Refer to page 41 of the Premium Direct PDS for more information on conditions and eligibility.

Your decision to get Income Protection Insurance will largely depend on your life stage. Here are some life events that are common motivators for taking out a policy:

• Starting your first job: If you get injured/ill any protection from your employer may be minimal
• Finishing a degree: You finished further study, and this places you in a different occupation category and salary band
• Promotion: A promotion where your income has gone up
• Being self-employed: You are on your own or hiring someone
• Setting up an SMSF: In your SMSF you can be self-directed and include your income protection as part of the SMSF
• Setting up a partnership: Setting up a partnership will normally mean your financial requirements will change
• Starting a family: Becoming a parent which means you have more financial responsibility
• Starting a business: If you’re running your own small business, you may not have sick leave or annual leave
• Becoming a homeowner: Buying your first home and taking out a mortgage

If you’re wondering how much income protection insurance you might need, you can start by considering the following questions:

• Do you have debts such as a mortgage, car loan, or credit card instalments?
• Do you have dependents, and associated costs such as childcare or school fees?
• Do you have savings that you could use to supplement your income if you were not working?

If you answered ‘yes’ to either of the first two questions, take a moment to calculate how much money you would need each month to continue meeting these financial obligations, if you were suddenly unable to earn an income.

Your answer to the third question will help to determine your Monthly Benefit amount.

With NobleOak’s Income Protection Insurance, you can choose cover of up to 70% of your regular pre-tax income (subject to some limitations), up to a maximum of $30,000 per month.

You can also find out more in our guide: How Much Income Protection Cover Do You Need – Four Tips for Calculating the Costs. You can also access our Life Insurance calculator to help you calculate all of your Life Insurance product requirements and needs based on your circumstances.

The amount you pay for cover (your annual or monthly premium) will depend on a variety of individual factors including your age, gender, occupation, and whether or not you smoke. NobleOak will also need to understand your medical history and lifestyle (such as sports or hobbies) before we can confirm the premium you will be required to pay. The level of cover you choose is another factor that will affect the cost.

Once you apply, our underwriting team will assess your application, and we may need to contact you for more information if your personal situation requires any premium loadings, or exclusions for certain medical conditions.

The best way to get an estimate of what Income Protection cover may cost is to start a quote online or. You can also contact us or call us on 1300 041 494.

Please refer to page 61 of the PDS for more information on how premiums are calculated.

NobleOak’s Income Protection Insurance pays a monthly benefit of up to 70% of your regular income (before tax) if you can’t work due to sickness or injury (subject to certain limits). While premiums for Income Protection Insurance are generally

tax-deductible, you need to make sure you understand the tax implications, and you may need to seek professional tax advice to find out more.

When you can claim a tax deduction

According to the Australian Taxation Office (ATO), Income Protection Insurance premiums are generally tax-deductible. However, this can vary when cover is purchased as part of superannuation arrangements (for example, through an SMSF, or through an industry or retail super fund).

For all queries about taxation specific to your situation, we recommend you seek advice from an accountant or suitably qualified professional.

What you need to declare

As these benefits replace regular income, the ATO stipulates that any payments received under an Income Protection Insurance policy must be included on your tax return as part of your assessable income.

Please note that the information we provide is not advice but general information only. Find out more about Income Protection Insurance and tax deductions.

For all queries about taxation specific to your situation, we recommend you seek advice from an accountant or suitably qualified professional.

First, you should evaluate your monthly expenses, debts, and savings to get an idea of how much money you would need each month to maintain financial stability in the event of illness or injury. Once you have an idea of your needs, you can get started by using our online quote tool or calling the NobleOak team on 1300 041 494.

During the application process, you’ll need to fill in a questionnaire about your health and lifestyle. In some cases, you might be required to undertake medical tests which NobleOak will pay for.  We will then process your application and notify you if we are able to provide you with cover when it becomes effective. You can then enjoy the peace of mind that comes from knowing you’re protected.

You will be asked to select a Benefit Period when you apply for this product.

The Benefit Period is the maximum period of time that you can receive a monthly benefit (and a Monthly Superannuation Benefit if it applies) while you are continuously Disabled. The choices are:

• 1, 2, 5 or 10 years – the total number of years you can receive the benefit for any one claim event, or
• To age 65 – the Benefit Period ends at the policy anniversary while you are age 65

The Benefit Period starts at the end of the Waiting Period. Premiums for shorter Benefit Periods are generally lower than those for a longer Benefit Period.  Please see pages 42-43 of the Premium Direct PDS for more information.

This will depend on the benefit period you select when you purchase your Income Protection Insurance policy. A common option is coverage for a specific period, such as two, five years or ten years. Another option is to choose coverage that lasts until a specific age, like 65. NobleOak also offer a new innovative ten-year benefit period which was introduced in late 2024.

Your Income Protection Insurance will remain active as long as you continue to pay your premiums and meet the policy conditions. Your policy can be tailored to align with your working years, ensuring you’re covered during the period you’re most financially dependent on your income.  All policies expire at the policy anniversary after age 65. Please see pages 42-43 of the Premium Direct PDS for more information.

Yes, it is possible to have more than one Income Protection Insurance policy, but there are limitations. Insurers typically restrict the total amount of coverage you can claim across all policies to prevent you from receiving benefits that exceed your actual income. When applying for a new policy, insurers usually ask about existing coverage, and your combined benefits from all policies are capped at a percentage of your income, often around 70%- 75%.

Having multiple policies might be beneficial if you want to supplement an existing policy with additional coverage, such as extending the benefit period or addressing gaps in an employer-provided plan. Consulting with a financial adviser can potentially help you navigate any complexities and make informed decisions about your income protection needs.

It is important to be aware that NobleOak Income Protection Insurance does not cover employment termination. If your employer terminates your employment or you are made redundant, you will not be eligible to claim on your Income Protection Insurance.

Benefits will also not be payable by us if your sickness or injury is a result of, or related to:

• Normal and uncomplicated pregnancy, miscarriage or childbirth;
• Your participation in criminal activity or your incarceration;
• Self-inflicted injury or attempted suicide (for the first 13 months of cover);
• A permanent or temporary banning, deregistration, disqualification or restriction being placed on you from performing all or some of the duties of your regular occupation;
• War or an act of war; or
• Any sickness or injury that occurred before your insurance commencement date, unless clearly disclosed to and accepted by NobleOak.

The full list of exclusions and limitations for NobleOak’s Income Protection cover can also be found on page 48 of the NobleOak Premium Life Direct PDS.

To make a claim on your NobleOak Income Protection Insurance policy, the first step is to get in touch with us and provide any necessary medical documentation and evidence of your income to support your claim.

You can contact us online or call 1300 551 044 to speak to our team, and we’ll guide you through the process.

Once all the required information is submitted, our claims team will assess the details. We aim to process claims quickly, so you can start receiving your benefits as quickly as possible.

More information about making a claim can be found here:

• What can you expect when you claim with NobleOak?
• Our simple four step insurance claim process

You can claim Income Protection Insurance if you are unable to work due to an illness or injury that prevents you from earning your regular income. The exact timing depends on the waiting period specified in your policy, which is the amount of time you must be off work before benefits begin. Waiting periods typically range from 14 to 90 days or longer, depending on your policy.

The claim must also meet the terms and conditions outlined in your policy. For example, some policies may only cover specific illnesses or injuries, while others might exclude certain pre-existing conditions. Please contact us if you have questions or need assistance with making a claim.

Yes, Income Protection Insurance is available to you if you’re self-employed (subject to our standard underwriting assessment). In fact, this type of insurance can be useful for anyone who is self-employed and doesn’t receive any employer-paid sick leave or other employee entitlements. Find out more here in a related NobleOak blog which explains the ins and outs of self-employment related to Income Protection Insurance.

NobleOak’s Income Protection Insurance offers cover of up to 70% of your regular income to help support you and your family and cover essential living expenses if you are unable to work due to sickness or injury.  In addition, if you run your own business, NobleOak offers what can be a valuable add-on to our Income Protection Insurance: Business Expenses Insurance, which helps cover the fixed running costs of your business.

Most occupations can be covered by NobleOak’s Income Protection Insurance, however if your occupation is considered hazardous, the level of risk will be assessed and, in some situations, this may affect your eligibility or the level of your premiums.

The best way to find out if your occupation can be covered by NobleOak Income Protection Insurance is to call us on 1300 041 494.

While not mandatory, Income Protection Insurance can be a valuable safeguard for homeowners with a mortgage. This type of insurance provides a steady income if you’re unable to work due to illness or injury, helping you cover essential expenses – including your mortgage repayments.

Your decision will ultimately depend on your individual circumstances. If you have substantial savings, other sources of income, or a partner who can contribute to the mortgage, you may not find it necessary. On the other hand, if your household heavily relies on your income to cover expenses, having Income Protection Insurance may be a wise consideration.

Total and Permanent Disability (TPD) Insurance provides a lump sum payout if you become permanently unable to work due to an illness or injury – helping to cover long-term expenses such as medical care and debt repayments. By contrast, Income Protection Insurance provides monthly payments to replace a portion of your income if you’re temporarily unable to work due to illness or injury.

Together, TPD Insurance and Income Protection Insurance may be able to provide you with comprehensive financial security, covering both short-term and permanent loss of income. For more information about which insurance options are best for your needs, please contact us.

Please note that TPD has a different assessment criterion to satisfy at claim time. Please refer to the relevant product sections of the Premium Direct PDS to understand these coverages better.

No, Income Protection Insurance and Life Insurance are not the same – although both can provide some financial security in the case of certain events. Income Protection Insurance is designed to replace a portion of your income if you’re unable to work due to illness or injury. This type of insurance is focused on your ability to maintain your lifestyle during a temporary or long-term loss of income.

Life Insurance, on the other hand, provides a lump sum payment to your beneficiaries in the event of your death (or, in some cases, upon a terminal illness diagnosis). Its purpose is to offer financial support to your loved ones. While both policies offer financial protection, they address different risks and needs.

Many people choose to hold both Income Protection Insurance and Life Insurance. To decide which approach is best suited to your needs, please contact us to find out more.

One of the features of NobleOak’s Income Protection Insurance is that we will waive your premiums while you are receiving monthly benefits.

For example, if after the selected waiting period, you are unable to work for six months and are receiving your monthly benefits, you will not be required to pay premiums during that period.

Your premiums will resume once you return to work, or at the end of your Benefit Period, whichever occurs first.

Most people have some sick leave available, savings or some other type of support that can help them manage through the initial period of sickness or injury. With NobleOak Income Protection Insurance you can choose from Waiting Periods: 30, 60, 90 or 730 days from the date of Disability during which no benefit is paid. Choosing the longer Waiting Period reduces your premiums.

For example, Daphne’s a fit and healthy 30-year-old primary school teacher who rarely gets sick and accrues unused paid sick leave. She also has regular term holidays and an emergency savings account that gives her peace of mind if something unforeseen comes up. To keep her Income Protection Insurance premiums to a minimum, Daphne has chosen a waiting period of 90 days, confident that she will only need benefits to be paid if she is disabled for more than 3 months.

Indemnity value means that even though you selected an amount to be insured for when you applied (often based on your income), if at the time you make a claim you have been earning less, your benefit will be adjusted accordingly. That is to say, you will be paid whichever is lower: the benefit amount, or 70% of the actual pre-disability income (subject to certain limits).

For example, Trudy takes out NobleOak’s Income Protection Insurance when she is earning $180,000 a year in the advertising industry, or $15,000/month. In her application, even though she could get cover for over $10,500 per month, she decides a Monthly Benefit of $8,000 per month is sufficient to cover her if she couldn’t work.

Several years later, there has been an economic downturn and Trudy is working in a smaller agency for a lower income of $120,000 when she suffers a serious injury and has to stop work. She makes a claim on her NobleOak Income Protection Insurance. Because Trudy’s income now translates to a maximum Monthly Benefit of $7,000 (70% x $120,000/12), this slightly lower amount is what she will receive, compared to her insured Monthly Benefit of $8,000. It’s a good idea to review your cover regularly to ensure it still suits your needs.

There are two main categories of disability defined within Income Protection Insurance: Total Disability and Partial Disability.

Totally Disabled:

(and ‘Total Disability’ and ‘Total Disablement’) means solely because of Sickness or Injury, the Life Insured is:

• not working (whether paid or unpaid) and does not have any work capacity, and
• under the regular care and following the advice of a Medical Practitioner in relation to that Sickness or Injury (including any care or recovery plan recommended by a treating Medical Practitioner).
• You are unable to perform one or more duties of your occupation important or essential to producing income, and
• You are not working, whether paid or unpaid, and
• You are following the advice of a medical practitioner.

If you become Partially Disabled due to sickness or injury, that means you are not Totally Disabled and:

• you are capable of working or are working less than 32 hours per week in suitable work,
• you have a current Post Disability Income, less than 80% of your Pre-Disability Income; and

you are under the regular care and following the advice of a treating Medical Practitioner in relation to the sickness and injury (including any care and recovery plan recommended by a treating Medical Practitioner).

To be eligible to receive a benefit you must remain either Totally Disabled or Partially Disabled for the duration of the Waiting Period that you have chosen when you took out your policy. If we classify your occupation as ‘medium blue’ or ‘heavy blue’ (using our standard guidelines), you must also be Totally Disabled for 5 working days.

When you take out Income Protection Insurance with NobleOak, you may be entitled to the following types of product features and benefits:

• A robust Total Disablement Benefit for your own occupation – there is no switch to any occupation – this means your benefit assessment criteria does not become stricter at claim time
• Partial Disability Benefit – you may be able to work part time and be paid a benefit
• A high replacement ratio and solid income replacement of up to 70%
• No passive income offset at claim time – this means any passive income you earn will not be deducted from your monthly claims benefit
• A new innovative 10-year benefit period which provides a mid-term coverage option sitting between traditional short term IP benefit periods and long tail age 65 Income Protection
• Indexation of monthly Sum Insured based on the lesser of the Consumer Price Index (CPI) or 3%
• Future Insurability – you can dial up your cover without underwriting on certain events by $2,500
• Extensive Rehabilitation and Retraining Support
• Recovery at Work Benefit
• Rehab Program Expense Benefit
• Vocational Transition Support Benefit
• Recurring Disablement Benefit
• Optional Claim Increase Benefit
• Optional Monthly Super Benefit

To find out more about each of these benefits please see page 41-47 of the Premium Life Direct PDS. There is also a relevant case study which brings some of these benefits to life on page 51 of the PDS.

Could you afford to maintain your current lifestyle if your salary was switched off tomorrow? If this is a concern for you, it’s worth looking into insurance options that can keep you afloat financially if you were to become unable to work due to illness or injury.

Here are some of the ways that Total and Permanent Disability (TPD) and Income Protection Insurance differ from each other:

How you purchase the cover

TPD Insurance is purchased at NobleOak as part of an optional extra to Life Insurance. This is often referred to as a ‘rider’ product, in that, you cannot have TPD Insurance without Life Insurance in place. As TPD Insurance will be a portion of your Life Cover, it cannot be higher than your Life Cover.

Income Protection Insurance on the other hand, is purchased as a standalone cover that sits separate to any Life Insurance you might have and is based on replacing your monthly income if you cannot work due to sickness or injury.

How claims are paid

TPD Insurance pays a once-only lump sum if you are never able to return to work again. On paying out this lump sum, your Life Insurance is reduced by the amount of the claim. You can choose to be covered for situations where you are totally and permanently disabled from your own occupation, or from any occupation. You are also required to serve an extended waiting period of three months and be continually disabled.

NobleOak’s Income Protection Insurance, on the other hand, pays you a monthly income of up to 70% of your regular income if you are unable to work due to sickness or injury – even if the disability is temporary and even if you are not Totally Disabled (subject to claims criteria). You can choose a Benefit Period of one year, two years, five years, ten years, or to age 65 – this determines the maximum length of time a claim could be paid for.

How you could use your benefit

TPD Insurance provides your benefit as a lump sum when you are unlikely to return to your own or any occupation again. Income Protection Insurance provides monthly benefits, and you have a waiting period of 30, 60, 90 or 730 days. You might decide to take out both types of cover, so you have broader financial coverage if you’re unable to work due to illness or injury.

For example, if you became totally and permanently disabled and couldn’t work again, you might use the TPD benefit (a lump sum) to pay off the mortgage and other large debts, while an Income Protection benefit (an ongoing monthly payment) could be used for regular living and therapy costs. In either scenario, the benefit payments would provide greater peace of mind that your expenses could be covered.