Income Protection insurance

Income protection insurance replaces the income lost through your inability to work due to injury or sickness.

This insurance is separate from LUCRF Super's 'Death Only' and 'Death and Total & Permanent Disablement (TPD)' insurance.

This means that you can apply for Income Protection in addition to your 'Death Only' or 'Death and TPD' cover.

The maximum benefit for Income Protection insurance is 85% of your pre-injury or illness salary. This figure is a total of the 75% paid to you as income and the 10% superannuation contribution that is paid into your LUCRF Super account.

The benefit is capped at $30,000 cover per month and  is offered in weekly benefit units of $100 (see premiums table below).

All benefits are payable after a 30,60, or 90-day waiting period. The income is payable for a period of two years or five years.

Your benefit may be reduced if you are in receipt of any other disability income, illness or injury policies from a superannuation fund.

Casual employees

Casual employees are now able to attain income protection insurance.

To be eligible to apply for cover, casual employees are required to work a minimum of 30 hours per week averaged over the six months prior to the date of your insurance cover application. Evidence is required on application in the form of six months worth of payslips or other appropriate documentation to prove hours of work.

A 90-day waiting period and a two-year benefit period applies to casual employees.

To make an eligible claim, casual employees must have worked at least 20 hours per week averaged over the six months prior to making a claim. This must be substantiated with a further six months of payslips or appropriate documentation to prove the hours of work and provided upon making a claim.

Automatic acceptance of cover is only available once per member; commencing subsequent LUCRF Super memberships will not entitle you to additional automatically accepted cover.

How Income Protection works

Income Protection insurance depends on various factors such as age, gender, the type of work you do and the waiting and benefit periods you choose.

Work categories

Income protection insurance is available in four different work categories, depending on the type of work you do. Your job and role will be confirmed before any insurance claim is accepted.

For members who meet the following criteria:

Your current annual salary package (including superannuation guarantee contributions) is at least $150,000 per annum and you spend at least 80% of your time in an office or similar environment carrying out these office based duties and either:

1. You are a Professional white-collar worker with a university degree qualification relevant to the field of your main occupation
Or
2. You are an executive or senior managerial white-collar worker and not self-employed.

For professional, clerical or administrative white collar workers who do not perform any manual work, including sales people not involved in deliveries.

For skilled and unskilled workers, performing light manual work and involved in non-hazardous industries and/or tasks. Light blue also covers supervisors of heavy blue workers or fully qualified tradespeople (details of qualifications must be provided).

For skilled or semi-skilled manual workers and heavy machine operators who are not exposed to high risk accidents, health hazards or who do not participate in high risk occupations are classified heavy blue.

Please note: Unskilled workers or unskilled labourers performing heavy blue tasks are not included in the occupation class and any cover requested needs an assessment of occupational risk by the Insurer. Please contact us if you are an unskilled worker and would like more information about income protection insurance.

Eligibility

You are eligible to apply for cover if you meet the following criteria:

  • You’re between 14 and 64 (cover stops at 65), and
  • You’re an Australian citizen or an Australian permanent resident as defined in the Migration Act (Cth), and
  • You hold a LUCRF Super account,

AND YOU’RE

  • a full-time or permanent part-time employee working at least 15 hours per week

OR

  • a contractor working at least 15 hours per week and on a fixed-term contract of at least one year

OR

  • a casual employee working at least 30 hours per week (averaged over the previous six-month period).

Income protection benefits cease on the earliest of these dates:

  • The end of the two/five-year benefit period
  • Reaching age 65
  • Death, or
  • When you are no longer disabled.

Benefit payments

Income protection benefits are payable when, as a result of injury or illness, you are:

  • Incapable of performing one or more of the duties of your regular occupation necessary to produce income, as confirmed by a medical practitioner; and
  • Not engaged in any occupation; and
  • Under regular treatment and following the advice of a medical practitioner.

Partial benefits are also payable when all of the following apply:

  1. You have been totally disabled:
    1. for a period during which a total disablement benefit has been paid, or
    2. for at least 7 days out of 12 consecutive days during the waiting period.
  2. You then return to work, or are then capable of returning to your usual occupation, but only in a limited capacity; and
  3. The income you are earning, or are capable of earning, is less than your pre-disablement income, due to the injury or illness causing total disablement.

When are benefits not paid or reduced? (exclusions)

Benefit payments will not be made if the event giving rise to the claim is caused directly or indirectly by:

  • War, or act of war
  • An intentional self-inflicted act, or
  • Pregnancy, unless you are disabled for more than three months after the end of the pregnancy, in which case the waiting period is deemed to start on the later of the date total disablement begins and the end of the pregnancy.

Benefit payments may be reduced or refused:

  • If the premium has not been paid
  • If you become disabled during any periods of unemployment
  • Where you do not provide notice as soon as reasonably possible after your disability starts, to the extent that assessment or management of your claim is prejudiced, or
  • While you are imprisoned or the subject of a custodial sentence as a consequence of being convicted of committing a criminal offence.

The table below shows Income Protection insurance - Weekly Premium rates (in dollar amounts) per $100 weekly benefit.

 

Current Age

30-day
waiting period
60-day
waiting period
90-day
waiting period
Male Female Male Female Male Female
Professional
14-19 0.1610.1610.0850.0910.0570.063
20-24 0.1680.1680.0850.0910.0570.063
25-29 0.1760.1890.0910.1060.0570.070
30-34 0.2160.2450.1130.1400.0570.077
35-39 0.2860.3350.1470.1960.0770.106
40-44 0.3910.4540.2100.2720.1190.168
45-49 0.5510.6130.3000.3690.1960.259
50-54 0.8020.8290.4750.5370.3420.405
55-59 1.2191.1500.7250.7460.6070.593
60-64 1.3861.2050.8500.7730.6900.558
White Collar
14-190.1760.1760.0920.1000.0620.069
20-240.1840.1840.0920.1000.0620.069
25-290.1920.2070.1000.1150.0620.077
30-340.2380.2680.1230.1530.0620.085
35-390.3140.3680.1610.2150.0850.115
40-440.4290.4980.2300.2990.1310.184
45-490.6050.6740.3290.4060.2150.284
50-540.8800.9110.5210.5900.3750.444
55-591.3391.2630.7960.8190.6660.651
60-641.5231.3240.9340.8500.7580.612
Light Blue
14-190.3060.3290.1840.1990.1230.138
20-240.3220.3450.1920.2070.1310.138
25-290.3450.3910.2070.2380.1230.161
30-340.4140.5130.2450.3060.1310.169
35-390.5510.6970.3290.4290.1690.230
40-440.7580.9490.4670.6050.2680.368
45-491.0641.2780.6660.8190.4290.574
50-541.5531.7371.0491.1790.7580.896
55-592.3722.4101.6071.6451.3471.316
60-642.6932.5171.8821.7061.5301.232
Heavy Blue
14-190.4520.4820.2610.2910.1610.176
20-240.4670.4980.2760.2990.1690.184
25-290.5050.5670.2990.3450.1610.207
30-340.6050.7430.3600.4520.1690.222
35-390.8041.0180.4750.6200.2220.299
40-441.1021.3850.6810.8800.3520.482
45-491.5531.8670.9641.1940.5670.750
50-542.2652.5251.5231.7140.9951.179
55-593.4513.5042.3342.3951.7601.722
60-643.9253.6652.7322.4791.9971.607

 

Current Age

30-day
waiting period
60-day
waiting period
90-day
waiting period
Male Female Male Female Male Female
Professional
14-19 0.2870.2650.1900.2260.1160.156
20-24 0.3030.2800.1930.2270.1160.157
25-29 0.3230.3210.2120.2680.1190.178
30-34 0.4070.4250.2670.3610.1220.201
35-39 0.5490.5950.3550.5150.1700.282
40-44 0.7690.8220.5160.7320.2720.459
45-49 1.1121.1430.7551.0160.4580.728
50-54 1.6661.5911.2281.5180.8241.174
55-59 2.6142.2801.9302.1711.5031.774
60-64 2.5082.0081.8761.8591.3861.347
White Collar
14-190.3140.2900.2070.2460.1270.170
20-240.3320.3070.2110.2490.1270.172
25-290.3520.3520.2320.2920.1300.196
30-340.4470.4650.2900.3970.1330.221
35-390.6030.6520.3900.5640.1870.306
40-440.8450.0920.5660.8040.2970.503
45-491.2211.2550.8311.1170.5020.798
50-541.8291.7471.3471.6660.9041.288
55-592.8722.5042.1202.3851.6511.947
60-642.7552.2072.0622.0431.5231.478
Light Blue
14-190.5450.5420.4140.4930.2530.340
20-240.5810.5750.4390.5160.2690.343
25-290.6340.6630.4810.6030.2600.410
30-340.7780.8900.5810.7930.2830.441
35-391.0591.2350.7971.1280.3740.613
40-441.4921.7221.1511.6270.6111.005
45-492.1482.3821.6802.2551.0031.616
50-543.2273.3322.7133.3321.8262.598
55-595.0864.7804.2804.7903.3393.939
60-644.8744.1964.1564.1043.0772.974
Heavy Blue
14-190.8040.7940.5860.7200.3320.435
20-240.8440.8310.6320.7460.3480.457
25-290.9300.9620.6940.8750.3400.527
30-341.1391.2870.8531.1680.3660.581
35-391.5431.8641.1501.6320.4930.797
40-442.1712.5121.6782.3690.8031.319
45-493.1363.4802.4333.2871.3252.113
50-544.7064.8453.9404.8462.3973.419
55-597.3996.9506.2176.9744.3645.152
60-647.1026.1096.0315.9634.0143.878

If you need assistance regarding our Income Protection insurance, call us on  1300 130 780.