Injury. Illness. Unexpected misfortune strikes, and suddenly you can’t work.
The bills keep coming, mortgage payment is due next week, and the cash just stops.
You know you have income protection or TTD (Total Temporary Disability) insurance, so you file a claim. Then the insurer tells you there’s a “waiting period” before you get any benefit.
No one ever plans to get hurt or sick, so this is a rude awakening for many Australians. A waiting period means you’ll be unsupported for weeks, months, or even longer. During that time, you have to rely on savings, family, or endure severe financial hardship.
If you understand waiting periods in advance, you can make choices that reduce their impact when you need to claim. This article will help you:
- Define what waiting periods are and why they exist.
- Understand the differences between income protection and TTD waiting periods.
- Explain how long different types of waiting periods typically last.
- Know the common traps people fall into with waiting periods.
- Discuss the effect waiting periods have on various types of workers.
- Provide tips for navigating waiting periods so you’re not left struggling.
Defining a Waiting Period
A waiting period, also called a deferred period, is the time between your illness or injury and the insurer starting to pay benefits.
- For income protection insurance, it’s the gap between the disabling event and when monthly payments begin.
- For TTD cover (a superannuation-based benefit), it’s the time that must elapse from when you become unable to work until the fund accepts your claim.
Waiting periods exist to protect insurers. Without them, short-term absences — like the flu or a sprained ankle — would trigger payouts. They ensure benefits go to those with serious, lasting incapacity, not minor setbacks.
Waiting Periods in Income Protection Policies
How It Works
When buying income protection cover, you can usually choose your waiting period. Common options include:
- 14 days
- 30 days
- 60 days
- 90 days
- 6 months
The trade-off is simple: shorter wait = higher premium; longer wait = lower premium.
Example
- John has a 30-day waiting period. After injuring his knee, he’s off work. He uses his savings to survive the first month. On day 31, his policy kicks in.
- Sarah chose a 90-day wait to reduce premiums. Later, chronic fatigue forces her out of work. With limited savings, she struggles financially for three months before her first benefit arrives.
Why It Matters
- Little savings? A long waiting period may be unaffordable.
- Healthy buffer? A longer wait can save money long term through lower premiums.
Waiting Periods in TTD (Total Temporary Disability) Cover
TTD is typically linked to superannuation-based insurance. Here, the waiting period is fixed by the fund/insurer — you can’t change it.
Common Timeframes
- 30 days: Typical minimum wait before assessment.
- Up to 6 months: Some funds require extended incapacity before paying.
Example
A teacher has TTD cover in super. They’re diagnosed with cancer and stop work immediately. But their fund requires three continuous months of inability to work before benefits flow. Despite their condition, they receive nothing for the first 90 days.
Key Differences: Income Protection vs. TTD Waiting Periods
| Feature | Income Protection | TTD (via Superannuation) |
|---|---|---|
| Choice of Waiting Period | Yes – you select when purchasing | No – fixed by fund/insurer |
| Common Options | 14–90 days, sometimes 6 months | Typically 30–90 days, sometimes longer |
| Flexibility | High – adjust premium vs. waiting gap | Low – set terms |
| Premiums | Shorter wait = higher cost | Built into super, less control |
Why Do Waiting Periods Exist?
Insurers include waiting periods to:
- Prevent claims for short-term illnesses/injuries (e.g., flu, minor accidents).
- Encourage workers to use sick leave and annual leave first.
- Keep premiums affordable across the pool.
- Limit payouts to genuine, long-term disability cases.
Interactions with Leave and Centrelink Benefits
Sick Leave and Annual Leave
Many people rely on leave entitlements to cover waiting periods:
- Limited balances may run out before benefits start.
- Exhausting leave usually doesn’t harm your claim — but some insurers insist you use it first.
Centrelink and Other Benefits
During the waiting period, some turn to Centrelink disability or carer payments. But:
- Payments are much lower than wages.
- They are means-tested, excluding many higher earners.
- You can’t “double dip.” When insurance benefits start, Centrelink may be reduced or cancelled.
Common Waiting Period Traps
- Not Knowing the Waiting Period
Many assume benefits start immediately. They discover the gap only during crisis. - Miscalculating How It’s Applied
Waiting periods usually begin when you stop work, not diagnosis. Returning to part-time work often resets the clock. - Overestimating Sick Leave
People think leave will carry them through — until it runs out too early. - Choosing a Long Wait Without Savings
A 90-day wait may reduce premiums, but without an emergency fund, it’s financially dangerous. - Overlapping Policies
Having both TTD and income protection can cause unexpected gaps if waiting periods don’t align. - Assuming Family Can Cover the Gap
A partner’s income or family support often isn’t enough once medical bills and living costs add up.
Waiting Periods and Types of Workers
- Casual Workers: Hit hardest. With no sick leave, even a 30-day wait can be crippling.
- Salaried Employees: Have leave entitlements, but long waits still strain budgets.
- Self-Employed/Business Owners: Very vulnerable — no leave, and they face ongoing business expenses.
- Older Workers: May face longer waits in super-based TTD policies. Insurers sometimes argue retraining is possible, even when unrealistic.
Tips for Handling Waiting Periods
- Check Your Cover Now – Review your super or policy statement.
- Align to Your Savings – No savings? Pick shorter waits. Strong buffer? Longer waits can be cost-effective.
- Factor in Sick Leave – Consider how much you can realistically use.
- Keep Good Records – Keep all medical certificates and reports to prove incapacity dates.
- Get Advice Before Changing Policies – Don’t extend waiting periods just to cut premiums unless you’re sure you can afford the gap.
Scenarios: When Waiting Periods Matter
Case 1: Short Waiting Period
Michael, 42, a construction worker, injures his spine.
- Policy: 30-day wait.
- Uses 2 weeks’ sick leave, then savings.
- Benefits start on time and cover his mortgage.
Case 2: Long Waiting Period
Rebecca, 35, a nurse, develops multiple sclerosis.
- Policy: 90-day wait to reduce premiums.
- With limited savings, she struggles for three months.
- She later regrets not choosing a shorter period.
Case 3: TTD Cover in Super
Alan, 50, a teacher, is diagnosed with cancer.
- His super policy requires a 3-month wait.
- He receives nothing until the period ends.
- Alan survives financially only with his partner’s support.
FAQs
Do all income protection policies have waiting periods?
Yes. All include one, though you usually choose the length.
Can I change my waiting period?
With income protection, yes — but it may require underwriting. With TTD through super, no — it’s fixed.
Does the waiting period restart if I work part-time?
Often yes. Returning to work resets the period.
Can I claim both TTD and income protection?
Yes, sometimes. But you need to understand how waiting periods overlap.
Do waiting periods apply to lump sum TPD claims?
No. TPD lump sums have separate rules. Waiting periods only apply to income protection and TTD.
What if I change super funds?
You may lose TTD cover and end up with different waiting periods. Always check.
Can I access super early during the wait?
In limited hardship/compassionate grounds, yes. Rules are strict.
Do Centrelink payments affect waiting periods?
No. But once insurance benefits start, Centrelink may be offset.
Waiting periods are one of the least understood — but most critical — aspects of income protection and TTD insurance. They determine how long you’ll go without income support after illness or injury.
- Income protection: you choose the waiting period, balancing cost vs risk.
- TTD cover: fixed by your super fund’s insurer, with little flexibility.
The best protection is preparation. Know your waiting period now, assess your savings, and plan ahead.
At TPD Claims Lawyers, we help Australians every day understand waiting periods, challenge unfair insurer decisions, and secure the cover they deserve. If you’re unsure how your policy works, or you’re struggling with a claim, we can help you navigate it.
Last updated: 29 August 2025