Written by: Angelica Adhar If illness or injury has stopped you from working, income protection insurance exists to replace a portion of your income while you recover. For most Australians, this cover is already in place through their superannuation fund.
In this April 2026 guide, we explain what an income protection claim covers, how to make one, what you may be entitled to, and whether you can claim TPD and income protection at the same time.
What is an income protection claim?
An income protection claim is a claim made on your income protection insurance policy when illness or injury prevents you from working. It is designed to cover your living expenses, like mortgage repayments, bills, and daily living costs, while you are unable to work and are not earning. Income protection insurance can be held privately through an insurer or through your superannuation fund, and some people hold both.
If your income protection insurance claim is approved, the policy pays you a regular monthly benefit, typically up to 75% of your pre-disability income, for the duration of your benefit period or until you return to work. For example, someone earning $80,000 a year may receive $4,500 per month before tax.
Key Takeaway
Income protection insurance is different from TPD insurance. You do not need to be permanently disabled to claim. If your condition prevents you from working temporarily, you may be entitled to monthly payments while you recover.
What does income protection insurance cover?
Income protection insurance covers a wide range of physical and psychological conditions. Your illness or injury does not need to be work-related to qualify.
This can include:
- Cancer
- Heart attack and stroke
- Spinal and musculoskeletal injuries
- Chronic illness and fatigue conditions
- Motor vehicle accident injuries
- Depression, anxiety and post-traumatic stress disorder (PTSD)
- Bipolar disorder and schizophrenia
- All other recognised psychological conditions that prevent you from working.
Your diagnosis is only part of what determines whether a claim succeeds. What matters is whether your condition prevents you from working in line with your policy’s definition of disability.
For example, a nurse with a serious back injury may be assessed differently from an office worker with the same diagnosis, because the physical demands of their occupation are different. In some cases, you may be able to perform limited duties but still be entitled to a partial benefit if your earning capacity has been reduced.
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Do I have income protection cover?
Many Australians hold income protection insurance through their superannuation fund without being aware of it. If you have ever been employed and contributed to superannuation, cover may already be in place through your fund’s default insurance package, often alongside TPD and death cover.
Income protection cover can also be held through:
- A standalone policy purchased privately outside of super
- A union or membership benefit
- In some cases, the terms of a mortgage or loan product.
To find out whether you have cover, you can:
- Log in to your superannuation fund’s online portal and check your insurance details
- Review your most recent annual super statement, which will show whether insurance is attached and the cover amount
- Contact your fund directly and ask whether income protection insurance is included in your account.
And if you have changed employers over the years, you may hold active cover across more than one fund. For example, if you have worked across four employers over 30 years, each of those super funds may carry its own income protection policy, and each may be claimable separately.
Key Takeaway
If you are unsure whether you have income protection cover, start by contacting your superannuation fund. They can confirm whether cover is active, the amount you are insured for, and what conditions apply to making a claim.
How to claim income protection insurance
If you are claiming income protection insurance, the steps you take and the documents you gather before you submit can make a significant difference to the outcome.
Step-by-step, here’s how the income protection claims process works:
- Contact your superannuation fund or insurer to confirm your cover is active
- Review your policy document or PDS to understand your waiting period, benefit period, and how your policy defines your inability to work
- Notify your insurer as soon as possible, as most policies require prompt notification after you become unable to work
- Obtain a statement from your treating doctor confirming your diagnosis and your inability to work
- Gather supporting documents, including proof of income, 12 months of pay and leave history, and certified proof of identity
- Complete your claim form accurately and in full, your treating doctor completes their section separately
- Submit everything together to avoid delays in assessment
- If the insurer requests additional information during assessment, respond promptly to avoid delays.
- Keep records of all correspondence, medical reports, and expenses throughout the process.
Once your claim is approved, monthly payments start after your waiting period ends. The waiting period is the length of time you must be unable to work before payments begin, commonly 30, 60, 90 or 180 days, depending on your policy. Payments continue until you return to work or reach the end of your benefit period.
How a superannuation lawyer can help
Income protection claims can often turn on how well the medical and financial evidence is presented, and how your inability to work is interpreted under the terms of your policy. Even small inconsistencies or missing documentation can lead to delays or partial denials.
A superannuation lawyer can assist by:
- Reviewing your policy to confirm your entitlements, including the waiting period and benefit period
- Ensuring your medical evidence clearly supports your inability to work under the policy definition
- Preparing and submitting your claim to ensure all forms and documentation are consistent and complete
- Managing communication with the insurer and responding to requests for further information
- Challenging delays, disputed assessments, or rejected claims.
Legal support is particularly valuable where the insurer disputes your work capacity, questions your medical evidence, or delays payment beyond the expected assessment timeframe.
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Can you claim TPD and income protection at the same time?
In most cases, yes. TPD and income protection are different products that cover different circumstances, and you can generally claim both.
Income protection replaces a portion of your income while you are temporarily unable to work. TPD provides a lump sum payment if your condition is permanent and prevents you from returning to work. Because they serve different purposes, making one claim does not automatically prevent you from making the other.
| Income protection | TPD | |
|---|---|---|
| What it covers | Temporary inability to work due to illness or injury | Permanent inability to return to work |
| Type of payment | Regular monthly benefit | Once-off lump sum |
| How long to assess | Generally faster | Generally longer. Requires evidence of permanent incapacity |
| Medical evidence | Documents your current condition and expected recovery time | Requires evidence your condition is permanent |
| Can both be claimed? | Yes | Yes, in most cases |
Your income protection claim will be assessed and approved first. TPD claims generally take longer because they require evidence that your condition is permanent.
Does a TPD payout affect income protection payments?
In some cases, yes, it can affect income protection payments. Some policies include offset clauses that reduce or stop income protection payments once a TPD benefit is paid. And some super funds will assess your TPD eligibility in the background while your income protection claim is being paid, and approve a TPD benefit to bring those monthly payments to an end. Whether your payments continue depends on the terms of your specific policy.
Does medical evidence from one claim affect the other?
Yes. The forms you complete for an income protection claim ask your doctor to describe your current condition and how long you are expected to be unable to work. That same evidence is available to your fund when assessing your TPD claim, which requires evidence that the condition is permanent.
For example, a person receiving monthly income protection payments after a serious back injury may also be eligible for a TPD lump sum. If their income protection medical forms state they are expected to return to work in six months, that assessment may affect the TPD claim, which means showing the condition is permanent.
Lawyer insight
If you are receiving income protection payments and believe your condition may be permanent, seek legal advice before lodging a TPD claim. The order in which you lodge each claim, and how your medical evidence is framed across both, can affect what you are entitled to receive.
Can you claim income protection insurance on tax?
If you hold income protection insurance outside of superannuation and pay the premiums yourself, those premiums are generally tax-deductible. If your cover is held inside superannuation, the premiums are deducted from your super balance and are not directly deductible by you personally.
Income protection benefit payments are treated as taxable income regardless of how your policy is held. Tax is withheld at source before payments are made to you, the same as salary and wages. You will receive a PAYG payment summary at the end of the financial year.
What if your income protection claim is denied?
If your income protection claim is denied, you have the right to challenge the decision.
You can request an internal review through your super fund or insurer and lodge a complaint with the Australian Financial Complaints Authority (AFCA), which handles disputes between consumers and financial firms, including superannuation and insurance matters. Complaints to AFCA generally need to be lodged within two years of the decision.
Common reasons for a denied income protection claim include:
- Insufficient medical evidence to support your inability to work
- You did not disclose a pre-existing condition when you took out the policy
- The insurer determines that your condition does not meet the policy’s definition of disability
- Gaps or inconsistencies in your claim forms
- A late lodgement that falls outside the policy’s notification requirements.
Before a final decision is made, your insurer or super fund may issue a procedural fairness letter. A procedural fairness letter means the fund is considering denying your claim and must give you a chance to respond first. For example, if the fund is relying on a single independent medical report, you may be able to provide additional evidence from your treating specialists before the decision is finalised.
If your claim has been denied or you have received a procedural fairness letter, seeking legal advice early can help ensure the right steps are taken before the decision is finalised.
