A claim can be made once the individual is diagnosed as unable to work due to injury or illness and after the waiting period, a "self-selected factor" at the time of insurance purchase, which can be adjusted based on personal circumstances. Shorter waiting periods result in higher premiums, while longer periods mean cheaper premiums.

The claim amount depends on the coverage agreed upon with the insurance company at the time of purchase. For income-based protection, the maximum coverage is usually between 62.5% and 75% of income; for loan-based protection, it can be up to 115% of the repayment amount.

If the injury or illness is not long-term, the claim lasts until recovery and return to work. For long-term incapacity, the duration depends on the maximum payment period chosen at insurance inception, which could be 2 years, 5 years, or even until age 65 or 70. Longer payment periods typically mean higher premiums.

This insurance primarily covers inability to work due to injury or illness, not unemployment or redundancy. These are often minor features or additional covers in some policies, providing limited compensation under specific conditions. It's best to discuss details with an advisor.

ACC only covers wage compensation for accidental injuries and does not cover illnesses or medical conditions. Loan protection and ACC benefits can coexist without conflict, as more compensation is generally beneficial. However, income protection insurance must consider any offset by ACC payments.