What optional extras can income protection include?

Many insurers offer two key extra cost options - Super Contribution, pays your super contribution while you are incapacitated to ensure your retirement plans are not impacted, and Claims Escalation where the monthly benefit is indexed every year to ensure your payments keep up with the cost of lining. The longer the benefit period the more important these additional extras may be.

What is indexation in income protection?

Indexation takes two forms when we talk about insurance - sum insured indexation means that your sum insured (and premium) increase every year to keep up with the cost of living and ensure your benefits meet your needs should you claim, and indexation of your benefit while you are on claim to ensure your buying power is not impacted over time.

Does income protection pay a death benefit?

Many retail policies (like those offered on this site) will include a small death benefit. This is usually a multiple of your monthly benefit but would generally not be comparable to a full Life Insurance payout.

Are rehabilitation benefits included?

In a policy help outside Superannuation there is often a rehab benefit included, this is to help you get back to work and/or retrain to a suitable occupation.

What is a relapse benefit?

A relapse or recurrence benefit means that if you return to work during the benefit period and subsequently have a relapse within a defined time frame (6 months to a year is common) you can continue your claim without a waiting period. In this case the benefit period will be a continuation of the previous benefit period.

What is a waiver of premium benefit?

While you are claiming your income protection benefits your premium will be waived. This is for the income protection cover only and premium for any other covers in the same policy will continue to be payable.

Can I add optional extras later?

Often yes, but adding or changing optional extras may require underwriting and could affect your premium.

Do optional extras increase my monthly benefit?

Claims escalation and booster options generally increase payments during a claim. Super contributions are paid into your super fund.

Yes. Optional extras are subject to caps, eligibility rules, and policy definitions. Always refer to the PDS and your policy schedule.

Income Protection Optional Extras - Super Contributions, Claims Escalation & Booster Options

✨ Tailor your income protection beyond the basics

Income protection insurance is designed to replace part of your income if illness or injury prevents you from working. Some policies also allow optional extras that extend your cover beyond your standard monthly benefit.

The three most common optional extras are:

🏦

Super Contributions

Protect your retirement savings

📈

Claims Escalation

Maintain purchasing power during long claims

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Booster Options

Get additional support during early recovery

Note: Optional extras increase premiums and may be subject to eligibility rules, limits, and policy definitions.

🏦 Super Contributions Option

The super contributions option is designed to keep money flowing into your superannuation while you're on claim, helping reduce the long-term impact that time off work can have on your retirement savings.

How it works

If your claim is accepted, this option may pay an additional amount intended to represent the super contributions you would normally receive while working.

Additional payment on top of your income benefit
Paid directly into your super fund
Represents missed employer contributions

Who it suits

People who want to minimise the retirement impact of a long-term claim
Higher-income earners where missed contributions can compound over time
Those relying on super for retirement rather than other investments

Note: Contributions are capped, paid to your super fund (not you), and vary by insurer.

📈 Claims Escalation Option

Claims escalation (also called indexation on claim) increases your monthly income protection benefit while you're on claim - usually once per year - to help your payments keep pace with inflation and rising living costs.

If a claim lasts several years, the buying power of a fixed monthly benefit can erode over time. Claims escalation helps preserve the real value of your benefit during longer-term claims.

How it works

Increases your benefit annually while on claim
Usually based on CPI (as published by the ABS) or a fixed percentage
Protects real-world purchasing power

Who it suits

People with longer benefit periods
Those seeking stronger protection for extended claims
Households with fixed or rising expenses such as mortgages, rent, or school fees

Note: Claims escalation increases premiums. The CPI increase is usually applied annually. All increases are subject to policy limits and definitions

🚀 Booster Options

A booster option increases the amount paid and is designed to give extra financial breathing room during a difficult period - particularly early in a claim.

Temporarily increases your monthly benefit by a set percentage
Apply for a specific timeframe (for example, early in a claim or after a certain duration)
Apply only to certain claim types or definitions

Who it suits

People with tight monthly budgets and high fixed expenses
Those who want stronger financial support during the initial illness or recovery phase
Anyone seeking a buffer for recovery-related or lifestyle disruption costs

Note: Booster payments are capped and not available for all claim types. Adding a booster increases premiums

🧭 How to Decide Which Optional Extra Fits Your Needs

💼 Are you concerned about your retirement savings if you're off work long-term?
→ Consider Super Contributions to keep your super growing during a claim.

📈 Worried that inflation might eat away at your benefit value over time?
→ Claims Escalation can help your payments keep pace with rising costs.

🚀 Need more financial breathing room at the start of a claim?
→ A Booster Option can temporarily increase your income early in recovery.

Commonly Included Income Protection Cover Benefits

In addition to core cover for total and partial disability, many income protection policies include valuable built-in benefits that enhance flexibility and value - especially during claim time.

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Waiver of Premium While on Claim

If you're on claim, most policies waive your income protection premiums for the duration of the benefit period.

Important: If you hold other cover types (e.g. life, TPD), those premiums may still be payable if you wish to keep those policies in force.

📈

Future Increase Benefit

This feature allows you to increase your monthly benefit in line with rising income - without additional medical underwriting.

Useful if your income increases significantly after taking out your policy (e.g. promotions, business growth).

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Relapse Benefit

If the same or a related illness or injury causes another claim within a specified timeframe of returning to work, this benefit allows your claim to resume without a new waiting period and will act as a continuation of the previously claimed benefit period.

⚰️

Death Benefit

If you pass away while the policy is in force, some insurers offer a small lump sum benefit (e.g. 3 times the monthly benefit, up to a maximum cap).

Designed to assist with immediate costs like funeral expenses.

🧑‍⚕️

Rehabilitation Benefit (Outside Super Only)

Covers the cost of approved rehabilitation programs that support your return to work. This may include physical rehab, vocational training, or workplace modifications.

Note: Usually only available on policies held outside of superannuation. Although there are strategies that allow you to pay through super while having some protection.

🏥

Elective Surgery Benefit

If you're undergoing elective or non-urgent surgery and are unable to work, you may be eligible to claim after a 6-month waiting period.

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Frequently Asked Questions

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