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Zurich Income Replacement

ZurichWe all fall sick at some point in our lives. If you’re employed full-time, you get the luxury of using your sick days so you can focus on recovery. But what if you were sick or injured for an extended period-of-time? Could you afford to take time off work to pay your rent or mortgage, and keep up with your family’s financial needs? Would you be able to rely on your health insurance alone, or would you need to draw down on your savings?

Because accidents and illnesses can occur at any time and go on for longer than expected, Zurich’s Income Replacement can help take the financial pressure off an already stressful situation. By replacing up to 75% of your pre-tax income, Income Replacement helps you and your family keep up with your expenses.

How does it work?

If you’re sick or injured, policies like Total and Permanent Disablement Insurance and Trauma Insurance can assist in the form of a lump sum payment. This is helpful in covering large bills or medical fees, but can be difficult to manage in the long-term. If you’re after a consistent stream of income to replace your lost earnings, Zurich’s Income Replacement provides a bi-monthly benefit.

The amount Zurich will pay depends on whether you’re earning income at the end of the waiting period or not. If you’re not earning any income, or are working for a maximum of 10 hours a weeks, then Zurich will pay either an agreed value amount (an insured monthly benefit chosen by you in your application), an indemnity value (75% of your pre-disability income).

If you are working at the end of your waiting period, Zurich will calculate your monthly benefit using a different formula and pay you accordingly.

Is there a waiting period to receive my benefit?

You can choose a waiting period of 14, 30, 60, 90 or 180 days, or 1 or 2 years. Generally speaking, the shorter the waiting period, the higher the premium paid by you. For example, you’d pay more in premiums for a waiting period of 30 days than for a waiting period of 2 years.

What types of Income Replacement can I choose from?

  • Standard
    Zurich will pay your monthly benefit and include a basic range of additional features. This level is available for all occupational categories.
  • Comprehensive
    One step up from the standard cover and includes additional features. This is available for all occupational categories except Special Risk occupations.
  • Premier
    Includes the full range of benefits, and also lets you increase your monthly benefit to cover 90% of your monthly income. Premier is only available for certain occupations.

What’s included?

As well as your monthly income benefit, Zurich also provides policy-holders with a number of built-in benefits. These include interim cover, inflation protection, waivers of waiting periods for reoccurring disabilities, and benefits for more than one sickness or injury.

Depending on your level of income replacement, you could also get:

  • Specified injury benefit
    If you suffer from one of Zurich’s specified injuries – such as quadriplegia, loss of a foot or hand, or loss of eyesight – Zurich will pay you a benefit in lieu of your income benefit.
  • Rehabilitation benefit
    Zurich will help you get back to work sooner by providing reimbursement for a rehabilitation program or modifications to your workplace.
  • Funeral benefit
    If you die while your cover is active, Zurich will pay your family a lump sum three times your insured monthly benefit to help with immediate expenses.
  • Flexible cover benefit
    Zurich will temporarily reduce your premium if your income is reduced when you have a child.
  • Waiver of premium
    You won’t have to pay your premiums while receiving a claim.
  • Confined to bed benefit*
    If you’re bed-ridden for more than 2 days, you could receive a benefit amount. For example, if you’re bed-ridden for 7 days, you’ll receive 7/30 of your monthly benefit amount.
  • Special care benefit*
    If a member of your family stops working to care for you, or you have to hire a personal carer, Zurich will pay you an additional $2500 to cover the costs of doing so.
  • Family support benefit*
    If you die while receiving your benefit, Zurich will continue to pay the benefit to your spouse for up to 12 months.
  • Trauma benefit
    If you suffer from a specified Trauma event – such as kidney failure, diplegia, a stroke or blindness – you could receive an advance benefit equal to six months of your income.
  • Future insurability*
    You can increase your monthly benefit by up to 15% each year without medical reassessment.

* Not available on all types of cover.

Want to compare this policy with others? You can compare Zurich’s insurance policies with other insurance providers through our free quote service.

Page last updated: April 12, 2014