Income protection insurance (also known as salary continuation) provides regular income (up to 85 per cent of monthly employment income) if the insured person suffers from any one of a range of conditions such as total disability, partial disability, injury, or ill health that prevents the insured person from working.

Benefit period

The benefit period is the period for which you receive income payments. You can usually choose to receive income payments for a specified time, say between two and five years, or up until a certain age from 55 to 70 years. The longer the benefit period, the higher the level of protection. Your financial advisor can help you determine the benefit period which best suits your needs.

How much will you receive?

You can receive up to 85 per cent of your monthly income from employment, and you can select either guaranteed or indemnity cover options.

For guaranteed, the level of cover is agreed at the time you apply. For indemnity, the level of cover is determined on the insured person’s income when the claim is made. For the self-employed or small business owners, the guaranteed option is usually only available where two to three years of proof of income is available.

Built-in benefits and options

Income protection policies generally offer a range of built-in benefits and options, which vary from one policy to the next, and may include:

  • Total Disability Benefit. An agreed monthly benefit is paid if the insured person is totally disabled due to injury or illness.
  • Partial Disability Benefit. A partial disability benefit may be paid if the insured person is disabled for a certain number of days during the waiting period.
  • Indexed Claim Benefits. The insured person’s benefit is adjusted for CPI increases each year after benefits have been paid for 12 months.


Learn how Dixon Advisory can help you protect your wealth through personal insurance or contact one of our Financial Advisors on 1300 883 158.