Annual Income

Please enter your gross annual income before tax.

Type of Policy

Agreed Value Policy - With an agreed-value policy, you prove your income up front and insure to receive a set amount. The advantage is that you know what you will receive, regardless of changes in your income. The disadvantage is that these policies cost more (approx 20%). Self employed people with variable income should take an agreed value policy.

Indemnity Policy - With an indemnity policy, you are insured for what you say you earn, but if you make a claim you have to verify your income. If your income has reduced since you applied for cover, your claim will be paid on the reduced amount.

Waiting Period

The waiting period, with income protection, determines how long you are unable to work before the policy begins paying your income. For example, with a 30 day waiting period you would begin receiving payments after 31 days.

Income protection should be used to protect against long term illness, therefore try and select a waiting period that matches your financial situation. It is important to note that the shorter the waiting period the higher the premium.

Benefit Period

With income protection this is how long the claim will be paid if you are unable to work. For example, with a benefit period to age 65, if you were unable to ever work again due to sickness or injury the policy would continue to pay you right up to this age. Ideally a long benefit period is chosen.