How To Compare Income Protection Insurance

Steps for Effective Income Protection Comparison

As consumers, we look at how we could benefit from a certain product. We always want to get the most from what we paid for. The same is true when we think of buying an insurance policy. We compare income protection insurance policies from different providers to ensure we get our money’s worth. Finding the right policy match for your needs is a complex process and requires thorough assessment of your needs and comparison of the different policies available. This article will explain how to compare different products on the market to find the right deal for you.

How to Compare Income Protection Insurance

With a lot of providers offering handsome insurance packages, choosing the best insurance policy for you could become a daunting task. In order to help your decision making in choosing the right policy, here are some helpful tips on how to compare income protection insurance:

  • Find out specific product features. Finding out the specific features means you need to know what the benefits and restrictions are in each insurance policy. When making an income protection comparison, you should consider when payment is made, the provision of a waiver of premium, or will my change of occupation render my policy invalid? These and other points need to be addressed prior to choosing so that you will have a clear-cut view what you really need or not.
  • Definitions of Disablement: Policy holders should be aware how their provider recognises disablement. Disablement can often be defined as:
    • Hours Based: Insured is unable to perform a certain number of hours of work per week.
    • Duties Based: Insured is unable to perform one or more duties required for their occupation.
    • Income Based: Insured suffers a reduction in their income as a result in their injury.
  • Ask an expert. With so many different products available and so much variation between them, consulting the advice of an insurance specialist when looking to policies can make the entire process much easier. An insurance specialist will be able to clearly explain the different product features available and help you determine the right amount of coverage to take out.
  • Compare the prices. This part should be a no-brainer since the foremost thing we consider aside from the benefits is the insurance premiums charged. However, you should be aware that by putting a check on some boxes could save you a lot of money. The buyers decision should never be based purely on price as this may lead to them without the right level of cover in place. That said, it is important to ensure that the price of the policy is reflective of what is included.
  • Check the terms and conditions. Don’t risk your family’s security and protection by not checking the terms and conditions. Read through each product disclosure statement closely to ensure you know exactly what events you are covered for. Each policy will come with different definitions of features available.

Compare income protection quotes from these direct brands

Product details Maximum cover Maximum Entry Age Cooling-off
Real Income Protection Insurance
Real Income Protection Insurance
Cover up to 75% of your monthly income if you can’t work due to illness or injury, up to a maximum of $10,000 a month. Take out cover today and you could get a bonus $100 Gift Card. $10,000 59 30 Get quoteMore info
NobleOak Income Protection
NobleOak Income Protection
Cover up to 75% (to a maximum of $25,000) of your monthly income with NobleOak Income Protection. Benefit period can be tailored to suit your needs. $25,000 59 30 Get quoteMore info
Virgin Income Protection
Virgin Income Protection
Protect your lifestyle with Virgin Income Protection. New eligible customers can earn 25,000 Velocity Points. Ends 31 Mar. Min monthly premium and T&Cs apply. $10,000 60 30 Get quoteMore info
ANZ Income Protection
ANZ Income Protection
Receive up to 75% of you income (up to $10,000 per month) of your income if you're unable to work due to serious illness or injury. $10,000 59 21 Get quoteMore info

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Process to Compare and Enquire for Income Protection Policies


How to Compare Insurance Protection Types

There are two types of income protection insurance which you should also put into consideration when comparing income insurance protection. By reviewing each type and policies, you could save a lot of money. By being familiar with each kind of income protection insurance, you would also know how to compare income insurance protection types. The two types of income protection insurance are:

  1. Indemnity Value Policy. This type of policy is generally more affordable and more common since benefits are adjusted according to the evaluation of your income at the time you made a claim. However, you will be asked to provide financial documents to support your claim. Indemnity value policies can also be provided through superannuation funds which may be more affordable but only provide a minimum level of protection.
  2. Agreed Value Insurance. This is more expensive and works in the opposite way to the indemnity value policy. You won’t need to present documents when you make a claim, but during the application process instead. The agreed value policy is also not affected by the changes in your income, so it might prove beneficial if you are self-employed and income is not that stable.

Benefits and Options to Look Out for When Comparing Plans

  • Benefit Indexation: Sum insured will increase each year on the policy anniversary to keep in line with the consumer price index.
  • Waiver of Premium: Premium will be waived if benefit is payable.
  • Rehabilitation Expenses: Additional benefit paid to cover the costs of rehabilitation.
  • Terminal Illness Benefit: Benefit paid if insured is diagnosed with a terminal illness.
  • Death Benefit: Benefit paid equal to multiple of monthly benefit if insured dies.
  • Worldwide Protection: Coverage provided 24 hours a day, 7 days a week, anywhere in the world.
  • Accommodation Benefit: Benefit paid to reimburse costs to accommodate an immediate family member that has had to travel more than 100km to stay with you.
  • Nursing Benefit: Benefit paid to cover the costs to have a certified nurse care for you if confined to bed.

Conclusion: Comparison of Policies is a Crucial Step in the Income Protection Application Process

It is not unusual to feel a little overwhelmed at the prospect of comparing different insurance policies and finding one tailored towards your specific needs. Industry reports have shown that many people are often confused by the complexity of the different policy benefits and features when comparing policies. Buying income protection is not a process to be rushed. Gain a clear understanding of the benefits of income protection insurance and what is and isn't necessary for your situation. An insurance consultant will help explain the types of policies available and help you through the comparison and application process.

William Eve

Will is a personal finance writer for specialising in content on insurance. While he cannot give personal advice to clients, Will enjoys explaining the intricacies of different types of protective cover to help individuals and businesses find affordable cover that won't leave them underinsured.

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