Income Protection Rehabilitation Benefits

A recent report by reinsurer Swiss Re has found that only 6% of income protection claimants are engaged in rehabilitation services, despite many policies offering to cover some or all of the cost of rehabilitation.

rehabilitation

  1. Rehabilitation expenses benefit
  2. Rehabilitation incentive benefit
  3. What is the cost of rehabilitation?
  4. How do I claim the benefit? 

Do you know if your income protection policy covers you for rehabilitation, and if so, what may be included? Below we take a look at some of the common rehabilitation benefits available:

Rehabilitation expenses benefit:

The rehabilitation expenses benefits (may be called different names by different insurers) will generally reimburse you for your participating in a rehabilitation program approved by your insurer. Generally, insurers will reimburse you up to 12 times your insured monthly benefit. For example if your monthly benefit is $5,000, you will be reimbursed $60,000.

This payment is in addition to any other payments you receive in relation to your income protection benefit.

Rehabilitation incentive benefit

If you participate in an approved rehabilitation program and return to work in a paid full time capacity for six consecutive months, select insurers will pay a one-off payment to you. This payment may be up to 3x your insured monthly benefit.

What is the cost of rehabilitation?

The report by Swiss Re revealed that the cost rehabilitation per income protection claim was $3,640, making it a fairly costly exercise. By utilising the rehabilitation benefit provided in many of the income protection policies we compare, you can not only save money but can return to work and be back on your feet sooner.

How do I claim the benefit?

Any rehabilitation program you participate in that is covered by this benefit will need to be specifically geared towards you returning to work. Generally, insurers will refer a claimant to a rehabilitation program which they will then cover the cost of or part of the cost of as per the benefit.

In some cases, insurers may approve an external rehabilitation program. However a rehabilitation plan will need to be submitted and approved before any benefit will be paid.

This process will differ between insurers and it is important to check with your adviser or claims specialist how this can be done.