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Comparing Income Protection Insurance

Income Protection Insurance

When searching for Life Insurance, Total and Permanent Disability (TPD), Trauma, and Income Protection insurance, the cost is just one factor to consider. Different insurance companies may offer better rates depending on your age and occupation. However, the terms offered by different insurers can be even more crucial, especially when it comes to income protection or TPD cover.

Occupation Ratings and Terms Differ Across Insurers

When it comes to insurance, your occupation plays a crucial role in determining your overall risk and the premiums you pay. Insurance companies use your job as a key factor in their risk assessment process, which not only influences your premiums but also the specific terms of your insurance contract.

For instance, if you are a ‘White Collar’ worker, some insurance companies may allow you to return to work from day one following a disability or illness without affecting your ‘waiting period.’ This means you can continue working without having to wait for a certain period before your insurance benefits kick in. On the other hand, some super funds have stricter requirements. They may stipulate in their product disclosure statements that ‘White Collar’ workers must experience 14 days of total disability before they are eligible to make a claim under their income protection products. If this condition is not met, your claim could be denied.

Underwritten Cover

Another important consideration is whether you have underwritten insurance cover.

Underwritten cover refers to an insurance policy that has been fully assessed and approved by the insurance company based on your individual risk factors. This process involves a thorough evaluation of your personal information, such as your health, occupation, lifestyle, and medical history. Here’s why underwritten cover is important:

Greater Certainty and Stability

When you have a fully underwritten insurance policy, it means that the terms of your contract are fixed and agreed upon at the time of underwriting. This provides greater certainty because the insurance company cannot change the terms of your policy later on. You can rely on the definitions and conditions outlined in the product disclosure statement that was in effect when you took out the policy.

Default Cover

In contrast, a default insurance contract (often offered automatically through your super fund) may be subject to changes as the product disclosure statement of your provider evolves over time. It’s important to note that the same insurance company may provide different versions of their product disclosure statement depending on whether you apply for cover directly with the insurance company or via a third-party offering, such as a super fund.

General Advice

The information in this blog contains general information only. We have not taken into consideration any of your personal objectives, financial situation, or needs. Before taking any action, you should consider whether the general advice contained in this blog is appropriate for you, having regard to your situation or needs. We recommend consulting a licensed or authorised financial adviser if you require financial advice that takes into account your personal circumstances.

Cyber Liability Insurance

Cyber Liability Insurance is designed to help protect you from claims and support your profitability in the event of a cyber breach or attack.

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Public Liability Insurance

Public Liability insurance is there to provide protection if someone makes a claim against the insured, the business or its employees.

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Business Insurance

A business insurance pack can provide cover for your business premises and contents, against loss, damage, theft or financial loss from an insured interruption to the business.

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Income Protection

General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

All information above has been provided by the author.

Morgan Insurance Brokers, ABN 28 628 815 074, AFSL 327131

This article originally appeared on Comparing Income Protection Insurance and has been published here with permission.