Income Protection FAQs

Yes, you can typically claim a tax deduction on income protection insurance premiums. If your income protection is part of an insurance bundle, you will only be able to claim on the income protection portion of premiums. If you receive an income protection payout, you should declare this on your tax return. You can confirm your individual tax deductions with your financial accountant by checking the ATO website. 

For the Sickness and Injury cover, it depends on the benefit period you have chosen. Each time you make a claim that’s accepted, you can be paid for up to 5 years, as long as you’re still unable to work due to the sickness or injury during that time.

You can claim as many times as you need over the life of the policy. The payment of benefits is subject to the relevant terms that apply to your policy, including any exclusions or limitations – check out the Combined Product Disclosure Statement (PDS) and Financial Services Guide (FSG) to find out more.

From the date of the medical practitioner’s diagnosis, a waiting period applies, and from then payments are made monthly in arrears. In other words, 30 days after the end of your claim waiting period you’ll receive your first payment You can choose a claim waiting period of 14, 28, or 90 days.

For the Sickness and Injury cover, stopping work must be due to sickness or injury. Some extra conditions apply – make sure you read the Combined Product Disclosure Statement (PDS) and Financial Services Guide (FSG) for all the details.

If you go back to work during a month you’re claiming, you’ll receive a portion of the monthly amount for the time you weren’t able to work. While you’re receiving your monthly benefit, we’ll let you take a break from paying your regular premiums, so your income isn’t reduced.

A waiting period is the amount of time that must pass before your monthly benefit payments start. It has to be a consecutive number of days that passes in which you’re eligible to be covered by your Income Protection policy; for example you’re injured or sick for that whole time.

AAMI’s Income Protection covers you when you’re unable to work for more than 14 days at a minimum (longer claim waiting periods are available and may cost less). If you’re not off work for longer than the claim waiting period and thus ineligible to make a claim, you may have personal leave or access to savings to cover the short term.

If you suffer from the same or related sickness or injury that you have previously claimed for within 6 months of your last benefit being payable, we will recommence benefit payments without applying a new waiting period. These benefits will be added to the remaining benefit period to ensure the maximum payment under the benefit period is not exceeded. If you’ve made a full recovery and there is more than 6 months between claims, then you will commence a new claim and the benefit period will restart.

The amount you get paid if you’re off work is dependent on your income, so it’s important you let us know if that changes. All you have to do is contact us on 13 22 44 and we’ll help you out.

If you’re overseas while sick or injured, you can receive your monthly benefit for up to 3 months. The benefit will resume or continue once you return from overseas (while the claim is still valid).

Yes ­– Australian citizens, New Zealand citizens and permanent residents who are residing in Australia at the time of applying for Income Protection can all apply.

We’re sorry you’re thinking of cancelling. For policy cancellations or to discuss your situation further and to consider your options, please call the AAMI Life Team on 13 22 44.

If you do cancel, you may qualify for a refund for the unexpired portion of the premium less our cancellation fee and any non-refundable government charges (if applicable).

If you or your loved ones are reliant on your income to pay for regular expenses, like utility bills or a home loan, then income protection insurance could provide you with valuable peace of mind. By providing monthly payments if you are unable to work due to illness or injury, income protection insurance offers financial security, giving you the opportunity to focus on your recovery and rehabilitation. 

People in all kinds of jobs may find income protection a valuable addition to their sense of financial security. If you or your loved ones could not survive without your income, then it is worth considering how income protection insurance could support you. To calculate how much income protection insurance you may need to suit your circumstances, and what your premiums would be, you can use the income protection calculator. 

Sometimes income protection insurance is included as part of your superannuation. Often this is a convenient and good-value option. However, when you sign up to cover as part of your superannuation, you are not always able to tailor your policy to your specific needs and if you change super funds your cover will likely end. It is a good idea to consider all options before settling on which type of insurance best suits your circumstances. 

We consider a range of personal and lifestyle attributes when considering your application, including the sports and hazardous activities you participate in, and whether they are performed on a recreational or professional basis.

Certain recreational sports and activities like soccer or football, may be covered without amendment or require you to pay a higher premium rate than normal (known as a ‘premium loading’). Alternatively, we may apply a longer waiting period on your policy for claims from injuries sustained while participating in that sport or activity.

We will advise you of any loadings or amendments before you decide to purchase cover, and the impact these options have on your premium.