Income Protection Insurance

Frequently Asked Questions

How often is a benefit paid?

If you have made a claim, your benefits will be paid fortnightly, one week in arrears.

Are benefit payments taxed?

Yes. A fortnightly Income Protection benefit payable to you is regarded as taxable income and attracts Pay-As-You-Go (PAYG) tax, the same as your wages do. PAYG tax is deducted from the benefit before it is paid to you. You will receive a payment summary for your tax return. If you receive a fortnightly Income Protection benefit, you will be asked to provide your Tax File Number by the insurer. If you do not supply it, you will be taxed at the maximum personal tax rate.

Is the cover automatic?

Yes. AMIST Super has combined all our members together to provide income protection cover automatically to all. By doing this we’ve ensured that no one misses out and no one has to answer lots of questions about their job, health or lifestyle. As a result, we have created really valuable, low cost income protection cover that helps to protect the financial future of our members and their families. We believe this is a valuable benefit to members that many other funds don’t automatically offer. And while we hope you’ll never need to use it, it’s good to know it’s there.

What pre-existing sicknesses are covered?

Any pre-existing sickness is covered unless you apply for additional cover outside the Special Offer Window (which ends 60 days after you receive your Welcome Letter from us) or you apply for cover over $25,000 per month. If you have been seeking ongoing medical treatment or advice for a pre-existing sickness, you cannot make a claim relating to that sickness within 2 years of when the policy starts. For injury claims, the injury must have occurred while the policy is in place.

What happens if I quit my job, get sacked or I’m in between jobs- am I still covered for illness of injury?

Income Protection Insurance protects the average income you have made for the 52 weeks prior to a claim being made. So if you are out of work for any reason (resignation / redundancy / terminated / leave, etc) then you ARE still covered with this Income Protection policy. In other words, if you were claiming Income Protection due to illness or injury, then your premiums continue to be paid OR if you are affected by illness / injury while ‘in between jobs’ or on leave, then you remain covered for 75% of your normal average income earned during the 52 weeks prior to a claim. Please note; if you remained unemployed for a full year and then had an accident or illness, then you not be able to claim because you will have had no income to claim against – therefore no benefit would be payable.

What if I travel overseas? Am I still covered?

Yes, provided you travel to a country that is not subject to an Australian Government “Travel Advisory Notice” issued by the Department of Foreign Affairs and Trade.

Can I increase my cover?

Yes, please use this table as a guide but remember you can only insure up to 75% of your income. See the Member Guide (Product Disclosure Statement - 4MB) for a more complete list of available cover.

For more answers,call the AMIST Super Hotline on 1800 808 614.