Income Protection Insurance can be a valuable product to protect your ongoing income against you becoming ill or injured and unable to work in your usual capacity.
Many people arrange their cover using an Insurance Broker, like Experien Insurance Services, and get the benefits of personal financial advice when doing so. This helps the broker to recommend cover that considers the needs, goals and circumstances of the insured person. A Broker can consider a wide range of insurers and a Broker can assist the client at the time of any claim.
This article considers cover arranged in this way as opposed to group insurance policies that are not tailor made or direct insurance policies that do not have a Broker supporting the insured.
If you want to reduce the costs of your Income Protection Insurance policy then you should first undertake a comprehensive review using your Broker. This can help you identify the need for the cover and also if the amount of cover you have is too high. If it is too high, then one option is to reduce the amount of cover.
Income Protection Insurance policies are often flexible and have many options, other than the amount of cover, to reduce costs. They include options like :
- Increasing the waiting period
- Decreasing the maximum benefit payment period
- If your health status warrants it, you can have premium health loadings reviewed and potentially reduced (if applicable)
- You can consider if another insurer may have cheaper premiums for the equivalent cover and potentially move if you are in good health
- You can consider removing optional coverage features (such as the increasing claims option that increases any claims value for those that run beyond a year)
- Can you switch down to a lower value policy type
- And several other considerations are available
To find out more about the services of Experien Insurance Services and to arrange a complimentary initial consultation at no additional cost, contact us via the link below :
The information provided contains general information and examples and does not take into account your personal objectives, financial situation or needs. Note that the policy wording will differ from insurer to insurer and loadings, exclusions and other limitations may apply by the insurer to each applicant on a case by case basis.
At the time of writing, Life insurance and Financial Advice services are provided by Experien Insurance Services Pty Ltd (EIS) ABN 99 128 678 937 and Experien Financial Services Pty Ltd (EFS) ABN 32 631 346 757. EIS and EFS are a Corporate Authorised Representative (No. 320626 and No. 1274354) of Affinia Financial Advisers Limited ABN 13 085 335 397 AFSL No. 237857. See our website for our Financial Services Guide and latest AFSL arrangements. Always read the Product Disclosure Statement issued by an Insurer before considering insurance.
