Income Protection common questions

Here are some answers to the most common questions we get asked about income protection. Call us on 132 825 between 8 am and 8 pm (AEST), Monday to Friday for service or between 8 am and 6 pm Monday to Friday for sales, or read the Product Disclosure Statement

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All Australian residents aged 18-60 can apply. We also offer cover for people who traditionally can’t get income protection because of their health, lifestyle or occupation including:

  • Contractors
  • Part-time workers
  • Homemakers
  • Self-employed people in business less than six months
  • Employed people who have been with their existing employer for less than 12 months
  • People with pre-existing medical conditions (see What isn’t covered? for more information)

Yes you can – and we’ll give you a discount for doing it! Add your partner or spouse to your policy and you’ll receive a 5% discount on your premiums.

If your partner or spouse works less than 20 hours a week or isn’t in paid employment at all, they can be protected under our Essentials Cover.

Currently, you can only add your partner to your policy by applying over the phone on 132 825

You’re covered for sickness and injury that leaves you Out of Action. The definition of Out of Action depends on your age and whether you’re working at the time of claim. Out of Action means:

Age: 18-64. Working at least 20 hours a week

We’ll pay you for sickness or injury diagnosed by a medical practitioner if in their opinion and ours you are:

  • Unable to attend or engage in your usual occupation
  • Not working in or performing any occupation, whether income generating or not
  • Under the regular care of and following the advice of a medical practitioner, including recommended courses of treatment
Age: 18-64. Working less than 20 hours a week

We’ll pay you for sickness or injury diagnosed by a medical practitioner if in their opinion and ours you are:

Unable to perform three or more of the following without the help of another person or using special equipment:

  • Cooking meals
  • Cleaning the home
  • Shopping for food
  • Providing care for children and/or dependent adults
  • Driving a car or using public transport
  • Not working in or performing any occupation, whether income generating or not
  • Under the regular care of and following the advice of a medical practitioner, including recommended courses of treatment
Age: 65-75

We’ll pay you for sickness or injury diagnosed by a medical practitioner if in their opinion and ours you are:

Unable to perform two or more of the following without the help of another person:

  • Bathing - the ability to shower and bathe
  • Dressing - the ability to put on and take off clothing
  • Toileting - the ability to get on and off and use the toilet
  • Mobility - the ability to get in and out of bed and a chair
  • Feeding - the ability to get food from a plate into your mouth
  • Not working in or performing any occupation, whether income generating or not
  • Under the regular care of and following the advice of a medical practitioner, including recommended courses of treatment

As with all insurance policies, there are some things that are excluded. Our Income Protection Cover and Essentials Cover exclude:

  • Mental health disorders, including anxiety disorders, depression and stress, disorders related to fatigue, drug or alcohol abuse
  • Taking intoxicating liquor
  • Cancer, stroke or heart attack in the first six months after your cover starts
  • Normal and uncomplicated pregnancy
  • Terrorism, civil commotion or unrest in countries outside Australia, if the Australian government has advised against travel to that country
  • War or an act of war
  • Any intentional self-inflicted act, including exposing yourself to risk of sickness or injury for any reason
  • Committing, or attempting to commit, a criminal offence

We won’t make any payments if you are in jail or lawfully detained. We may also apply other specific exclusions to your Income Protection Cover. These will be agreed with you when you take out your policy.

If you have Essentials Cover, there are the following additional exclusions for sickness or injuries caused by:

  • A pre-existing medical condition
  • A dangerous occupations or pastime
  • Football related injuries that result in you being off work or unable to perform your usual duties for less than 90 days
  • Back injuries that result in you being off work or unable to perform your usual duties for less than 90 days

If you were not able to, or only partially able to, perform your regular daily activities before you started your policy, we may not accept your claim. Involuntary Unemployment Cover also has certain cover exclusions.

For more details about what isn’t covered, see the Product Disclosure Statement

Premiums generally increase with age each year at the anniversary of your policy or if you increase your level of cover.

Unless otherwise requested, premiums also increase each year by 3% or the change in the consumer price index, whichever is higher. This is to help ensure that your cover keeps up with rises in the cost of living. However, you should still check your policy regularly to ensure the amount you are covered for still meets your needs.

We may put our premium rates up in the future, but any increases will apply to everyone that pays the same rate - we’ll never single you out for an increase. If we need to increase our premium rates, we’ll give you 30 days’ notice.

Income protection premiums are generally tax deductible. However, if you make a claim, your payments are generally taxed as part of your personal income. Make sure you check with your accountant to ensure that this applies to your own tax situation. Unfortunately we can’t give tax advice.

When you have NRMA Income Protection, we give you a 30-day money-back guarantee - so if you cancel your income protection policy in the first 30 days, we’ll give you a complete refund.

Please note, NRMA Income Protection is not an investment policy - so if it’s cancelled after the first 30 days, you won’t receive any refund of the premiums you’ve paid.

Yes - simply call us on 132 825 between 8am and 8pm (AEST), Monday to Friday to apply to increase your level of cover at any time. When you call, we may ask some more information about your health and lifestyle.

Please note, if you increase your level of cover, your premiums may also go up.

If you stop paying your premiums, you won’t be covered. We understand that today’s financial demands on your family can be tough. If you’re having trouble paying your premiums please contact us immediately so that we can try to work out an alternative that better suits your budget while allowing you to maintain the protection you need.

Many super funds do not automatically offer income protection cover - but even if your super includes income protection, it may not give you the level of cover you need. You should check to see how much cover your super offers you. You might find that you prefer to get your own income protection cover.

While some super funds do offer income protection, many don’t. So it’s important to check whether your super provides income protection and how much it offers. According to consumer watchdog CHOICE*, income protection through super often has fewer features and less flexibility than a policy outside super.

With NRMA Income Protection, you’re in control. You choose your level of cover, the waiting period and payout period. You can even select from a great range of optional extras - so you can be sure your lifestyle is protected.

If you have income protection through your super, check to see:

  • If you can choose how long you’d like to be paid for
  • How much cover it provides
  • How long you have to wait before you get paid

Whether your super is tied with your job or occupation - and if you leave, whether you will lose your insurance. You may find you’d prefer the flexibility of choosing your own income protection. That way, you can help make sure that your family is covered, no matter what the future brings.

*www.choice.com.au, Income Protection Insurance, May 2011.

For Income Protection Cover, you can choose from a waiting period of 14, 28, 60 or 90 days, the longer the waiting period you choose, the lower your premiums may be.

For Essentials Cover and Involuntary Unemployment Cover, the waiting period is fixed at 28 days.

The payout period is the maximum period of which payments will be made for a claim. You can choose the payout period you would like, the shorter the payout period, the lower your premiums may be.

  • With Income Protection Cover you can choose from payout periods of 6, 12 or 24 months - or even five years
  • With Essentials Cover, you can choose from 6, 12 or 24 months
  • Involuntary Unemployment Cover has a maximum payout period of three months

Essentials Cover does not cover:

  • A dangerous occupation or pastime; a work or lifestyle activity that involves:
  • Explosives
  • Weapons
  • Heights above 20m
  • Depths below 30m
  • Speeds above 130kmph
  • Football related injuries that result in you being off work or unable to perform your usual duties for less than 90 days
  • Back injuries that result in you being off work or unable to perform your usual duties for less than 90 days

With NRMA Income Protection, exclusions may be applied at the time of application.

With NRMA Income Protection, you will be covered if you are working or travelling abroad, except for any claim caused by:

  • Terrorism, civil commotion or unrest in countries outside Australia, if the Australian government has advised against travel to that country
  • War or an act of war

If you’re travelling abroad, you might want to add our Holiday Injury Cover to your policy, which could cover any extra expenses, such as extended accommodation costs, or travel expenses to get you home earlier than planned.

Holiday Injury Cover pays one-off extra payment equal to your first month’s benefit payment, up to $3,000, if you’re injured during state school or public holidays, or you’re more than 200 kilometres from home.

There are no medical checks required to apply - just answer some simple questions about your health and lifestyle. We will need access to your medical records if you make a claim.

NRMA Income Protection offers the following great discounts to everyone:

  • One month free if you pay your premium annually
  • A 5% discount on your premiums if you add your spouse or partner to your NRMA Income Protection policy

And, if you’re an existing NRMA Insurance customer, you’ll receive an extra 5% discount on your premium for the life of your policy.

Translation services

For customers who don't speak English, we offer a free Translation and Interpretive (TIS) government service.

You can access this by calling TIS on 131 450. TIS will organise a translator for the language you need, then they'll call us. NRMA Income Protection covers the full cost of the translation service.

We can also arrange an appointment in advance with a phone interpreter. Please speak to your customer service representative or personal claims manager.

National Relay Service (NRS)

We use the NRS to ensure we're accessible to customers with a hearing or speech impairment.

You can access an NRMA Income Protection phone number using one of the services below. Remember to provide the number you want to contact.

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The information on this website about NRMA Income Protection is general advice only and does not take into account your personal financial situation, needs or objectives. You should consider the Product Disclosure Statement and Financial Services Guide and your own circumstances before deciding to purchase or to continue to hold NRMA Income Protection. NRMA Income Protection is promoted by IAL Life Pty Limited ABN 15 137 509 936 an Authorised Representative (AR No. 427847) of TAL Direct Pty Limited ABN 39 084 666 017 AFSL 243260. NRMA Income Protection is issued by TAL Life Limited ABN 70 050 109 450 AFSL 237848 (except for Involuntary Unemployment Cover which is issued by St Andrew's Insurance (Australia) Pty Ltd ABN 89 075 044 656 AFSL 239649). IAL Life Pty Limited is a subsidiary of Insurance Australia Limited ABN 11 000 016 722 trading as NRMA Insurance. All life insurance information on this website is provided by TAL Direct Pty Limited and IAL Life Pty Limited.