What is a Product Disclosure Statement (PDS) and why it matters
A PDS is one of the most important documents you'll receive when taking out insurance. Here's how to read one and what to look for.
Income protection insurance pays a monthly benefit — typically up to 70% of your income — if you cannot work due to illness or injury.
Waiting periods
The waiting period is how long you must be off work before benefits start, commonly 14, 30, 60 or 90 days. A longer waiting period usually means a lower premium.
Benefit periods
The benefit period is how long payments continue — for example two years, five years, or to age 65. Longer benefit periods provide more security but cost more.
Agreed vs indemnity value
Agreed value locks in your benefit up front, while indemnity value assesses your income at claim time. Understand which applies before you rely on a figure.
Read the relevant income protection PDS for exact definitions and exclusions.