Am I Doubling Up on Income Protection?

Generally, no, not for more than the cap. Income protection is designed to replace a portion of your income, typically up to about 70%, so the total you can receive is tied to what you actually earn rather than to how many policies you hold. Even with cover in two places, the combined benefit is usually limited to that percentage of your income, so you would not collect two full benefits on top of each other. The exact way two policies interact depends on each policy's terms, which is why it is worth having them read together.

Often, yes. If both policies cover the same income and the payout is capped at a percentage of that income, the second policy may not increase what you can ever claim, while you still pay premiums on both. That is the situation we look for in a review. It does not always mean simply cancelling one, because the policies can differ in waiting periods, benefit periods and features, but it does mean checking that you are not paying twice for cover you can only use once.

Many people hold income protection without ever choosing it, because it can be bundled inside a super fund or attached to a bank or loan package. The quickest checks are your most recent super statement, which often lists any insurance and the premiums drawn from your balance, and the documentation for any bank or home loan product you hold. If you are not sure what you have, that is exactly what a review is for, because gathering the policies in one place is the only reliable way to see whether anything overlaps.

Sometimes consolidating makes sense, and sometimes keeping a specific policy is the better move. The right answer depends on the details of each policy, such as the waiting period, the benefit period, any features you would lose, and whether one policy has terms that would be hard to replace. A review can compare them side by side and identify whether consolidating, keeping one, or restructuring is the sensible path for your circumstances. This is general information, so the specifics are best worked through with an adviser.

Start by getting a clear picture of every policy you hold, including anything inside super or attached to a loan, then look at whether they overlap on the same income. Where there is genuine duplication, the cover can usually be consolidated so you are not paying twice. One important rule applies throughout: do not cancel any cover until replacement or remaining cover is confirmed in force, because a gap can leave you exposed and new cover can require fresh assessment. An adviser can manage that sequencing so nothing is dropped before it is safe to do so.