Income Protection

Erica Shadiac
Erica Shadiac Member Posts: 190
edited May 2013 in Day to day

Just wanted to share a little of my new understandings in this area.... (maybe others might be more prepared!)

I am very thankful that I have Income Protection Insurance through my industry-based Super. However, I was not aware that it was only the basic cover. When I joined up years ago they automatically set me on a certain level. Over the years my pay has increased but not my level of cover. So I am now eligible for about half of my normal salary instead of the 75% I could have got if I had increased the cover.

I had been aware of how much I was eligible for but wasn't comparing apples with apples. This is the gross amount and I was comparing it with my take home pay. Silly me. Never bothered to check. Can't blame chemo brain!

I am also very fortunate to have quite a bit of sick leave up my sleeve. However, another frustration....   I knew there was a three month waiting period before I could claim the IP but I thought I could just use up my sick leave then get IP to kick in.

But with one week to go I have discovered that if I don't take the IP straight after the 90 day waiting period then any sick leave benefits I receive from then will be offset against the IP I am eligible to receive. Offset = take off. So I will be getting even less until it is sorted. If I'd known this I would have been far more diligent in chasing up data to get the paperwork submitted. I thought I had a couple of months left not one week!

In discussions with NGS I also found out that between ages 55 and 59 I could set up a Transition to Retirement scheme for a couple of months while I am out of pocket (not something I would set up normally though until I am 60). But in the end the fiddling around is causing more stress than dealing with the cancer treatment!

The positive.... I can always find one. If I ever want to cut back on my full time work I need to be able to survive on a much smaller salary. So this will be practice! Tighten the belt and breathe in.

Comments

  • Bardoe
    Bardoe Member Posts: 57
    edited March 2015

    I agree that IP seems setup to benefit the administrator rather than the patient.  Mine was part of my super, so you would think that was straight forward - NOT for a minute - here's my story

    I was given conflicting information about how & when to claim. Made to use up most of my saved sick leave.  Had to fill in timesheets, for my one day per fortnight working,  that ran on a completely different pay system and dates.  It took 5 months, so I was already on leave with out pay,  before I knew they would pay my claim.  They did pay 3 months worth, so then received that payment at the end of 6 months.  Was then told, I have to apply for extension for next 3 months, even tho I was having 6 months chemo, than 6 weeks rads.  The 2nd claim (for the same disease & treatment) took another 6 weeks before approval.....

    it was unbelievably & totally incompetent management of a claim, was more stressful than the disease and I will not trust them to assist me in the process in the future.

    So my tips on claiming on income protection.  Get your forms and complete as soon as possible(keep copies of every single page) and lodge immediately, do not wait 30 days.

    Check and double check (ring at different times and also review their websites for different forms and instructions) 

    Understand if you can use your sick leave, save your sick leave,  or have to use "Leave without pay -- sick leave" ** this is important,  if you take the "wrong" kind of leave they can invalidate your claim. (I could have saved 4 weeks of my sick leave for later surgery, but they refused to use the 30 day start date, because i worked 2 half days  after recovering from my mastectomy.) - should have lied!

    my IP provider insisted that my employer stop paying me, so that I did not double dip(by getting $$ from both while I waited).  Great theory - but when I had to wait 6 months for the first payment, that would put some people into bankruptcy. (see how your payroll people can help if you need to wait - I returned my pay, once my claim was approved)

    They also would not pay promptly, so I ended up with 6 weeks pay in the next tax year and they refused to do the ATO paperwork, that could fix that.

    I had to chase them to get some kind of pay slip, when I moved onto "graded return work hours". 

    It seems there are 2 kinds of IP - I have heard that some BC girls get a dream run, and its all settled and paid with in few weeks or its really difficult, like the issues I had to deal.  But i did get thru it, and the $ that were due and I am thankful that I did not have to work 14/15 days  of each chemo session.

    Just dont rely on them (insurance companies to do you any favours because you have BC)

    cheers Bardoe

  • mgndam1603
    mgndam1603 Member Posts: 753 ✭
    edited March 2015

    Thank-you Ladies, this information is relevant to me as I am about to start IP. I had 5 months sick leave that finished end of July but am about to look at my paperwork now, this is through my super and requires 3 months before being paid.

    I also have private IP through my bank which was effective after 30 days and had to pay for doctors reports etc too.

    I will get on to my payroll department asap to start the ball rolling.

     

    thanks
    Donna

  • safarian
    safarian Member Posts: 24
    edited March 2015
    I must have been one of those that had a dream run! My progress claim was accepted and I have been paid for another three months (1.5 months in arrears, and 1.5 months in advance), and the claim finalised on the basis I will be back at work on July 1. I agree with Bardoe though, photocopy all docs before you post them and write down details of all phonecalls.  Beware of the trap that Bardot mentioned, if I had gone back to work after surgery then the waiting period would have started again.  Even though you might feel an obligation to return for a little (and maybe get some $$) while it could hurt you financially in the long run.Good luck with your claimsFiona
  • safarian
    safarian Member Posts: 24
    edited March 2015
    I must have been one of those that had a dream run! My progress claim was accepted and I have been paid for another three months (1.5 months in arrears, and 1.5 months in advance), and the claim finalised on the basis I will be back at work on July 1. I agree with Bardoe though, photocopy all docs before you post them and write down details of all phonecalls.  Beware of the trap that Bardot mentioned, if I had gone back to work after surgery then the waiting period would have started again.  Even though you might feel an obligation to return for a little (and maybe get some $$) while it could hurt you financially in the long run.Good luck with your claimsFiona
  • mgndam1603
    mgndam1603 Member Posts: 753 ✭
    edited March 2015

    I have been on income protection now for a few months and it has worked like a dream. For me the biggest issue is getting all the correct paperwork together, I put everything on the table and then take what is needed from each pile.

    I have discussed easing back into work and that is covered also. Od course all my doctors reports need to support a gradual return but I have had no issues at all.

    cheers

    Donna

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