01 / The meaning
What it means.
It concerns the person’s income, not the business’s turnover or every expense of running the business. The earnings definition can be particularly important for owners whose finances include salary, distributions and fluctuating business profits. A selected monthly benefit is not necessarily the amount payable: evidence of earnings, offsets and the wording’s limits may affect the calculation.
Compare the waiting period with available cash reserves and the benefit period with the duration of support sought. Partial disability, changes in occupation and existing cover through superannuation can also matter. An accident-only benefit may be narrower than cover for both illness and injury. Discuss personal insurance with an appropriately authorised adviser; this explanation does not indicate that BAU provides or arranges life insurance or personal income protection.
02 / Put it in context
A practical example.
Hypothetical example: a self-employed designer becomes unable to work after an injury. Their adviser reviews medical evidence, income records and the waiting period; the business’s rent is considered separately from any personal income benefit.
This example illustrates the term. It does not predict a claim outcome.
03 / Read the detail
What to check.
- Check the disability definition and how insured earnings are calculated.
- Compare waiting and benefit periods with available financial reserves.
- Review offsets, exclusions and any existing superannuation-based cover.
04 / Start a useful conversation
A question for your broker.
What earnings would be replaced, after which waiting period, and for how long?
05 / Connect the terms
Keep the meaning in context.
06 / Apply it to your business
Related insurance guides.
Further reading
Read the source guidance alongside the relevant policy wording.
General information only. This does not take into account your objectives, financial situation or needs. Before acting, consider whether the information is appropriate for you. Cover is subject to insurer acceptance and the policy terms, conditions, limits and exclusions. Read the Financial Services Guide and the relevant PDS (where applicable) and/or policy wording before deciding.
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