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Bed Confinement Option

The bed confinement option can generally entitle you to a portion of your benefit in daily increments if you are confined to bed for 3 consecutive days during your waiting period as a result of sickness or accident.

Generally, standard income protection policies only entitle you to your monthly benefit after your waiting period has ended and your benefit period has begun.

How do you select the Bed Confinement Option?

The bed confinement option is generally offered by select insurers as a paid optional benefit that you can select when applying for your income protection policy.

How does the Bed Confinement Option work?

If you experience a sickness or accident that confines you to bed for 3 consecutive days during your waiting period, insurers offering this option will generally entitle you to 1/30th of your monthly benefit for each day you are confined to bed. This benefit is generally paid in arrears.

The bed confinement option benefit will generally entitle you to 1/30th of your monthly benefit to a maximum of 90 days or until the end of the waiting period, if shorter. The first three days of bed confinement during your waiting period are generally included in your benefit.

Claiming on the Bed Confinement Option

When you claim on the bed confinement option you will generally need to satisfy all of the following criteria:

  • Have experienced a sickness or accident that renders you unable to perform at least one of your income producing duties

  • Following the advice of a medical practitioner, it is necessary for you to remain in or near a bed for a substantial part of the day

  • If confinement is at your usual place of residence, it is necessary for you to be under the continuous care of a registered nurse, other than a member of your immediate family

  • If confinement is not at your usual place of residence your insurer must be satisfied that there are reasonable grounds for the above point.

Your insurer will generally require written confirmation from your medical practitioner stating that you require to be confined to bed and under the full time care of a registered nurse.  

Bed Confinement Option Example:

Joe is ensured for a monthly benefit of $3,000 under an income protection policy with a 30 day waiting period and a bed confinement option.

Joe experiences an accident that, following the advice of his doctor, sees him confined to bed and placed under the full-time care of a registered nurse. As a result, he claims on his income protection policy, at which point he starts his waiting period.

Joe remains confined to his bed for three consecutive days during his waiting period. At this point, he is entitled to 1/30th of his monthly benefit, or $100 (i.e. 1/30th of $3,000), per day.

Joe remains confined to bed for a total of 10 days during his waiting period, including the 3 consecutive days he was initially confined to bed. He is therefore entitled to a benefit of $1,000 in total (i.e. 10 days X $100 per day) for the time he spent confined to bed during his waiting period.

If you have would like an income protection quote that incorporates the bed confinement option, please call us today on 1300 135 205.