How to Save on Your Income Protection Premiums

When looking into an income protection product you have different options to consider, depending on your budget. There are different ways to save money if you are eager to invest in income protection but don’t have a huge amount of money to put towards it.

How does income protection work?

Income protection will pay you a monthly benefit or simply, a set amount of money. It will usually pay out about 75% of your income, if you cannot work due to an illness or injury. You agree with the insurer upfront as to what your waiting period and benefit period will be. There is not a set list of conditions that it will or will not cover, it is simply designed to continue your income if you are unable to work in your occupation.

What is a waiting period?

Your waiting period is self explanatory. It is the amount of time you need to wait before you can start claiming on your insurance. A standard wait period that a lot of people opt to go with is a 30 day wait. However you can choose a 14 day wait, although this is more expensive as the time frame you need to wait is substantially less.

If you wish to save money though, you can opt for a longer waiting period like 60 or 90 days.

What is a benefit period?

Your benefit period is the amount of time you will be paid out for your claim. With income protection there are multiple options – this is a way in which you can save money.

You have options to have yourself covered to age 60 or 65. This means if you are unable to work, you will continually be paid your agreed amount of insurance until you turn age 60 or 65.

Alternatively you can choose a 2 year or 5 year benefit period. This means that anytime in your working life, if you develop an injury or illness, you will be paid up to a maximum of 2 or 5 years depending on which option you choose. As the benefit period is shorter, the premiums you pay are less expensive.

It is always smartest to take our insurance through a reputable insurance broker. They have relationships with all of the companies and will ensure you are getting the best deal, which is suited to your budget. They have your interests at heart, so they will be able to explain all of the ways you can save money, which you may not find going directly to insurer’s.

> Get an Income Protection Quote