Your biggest asset is your ability to earn an income. I talk about this a lot because I’m passionate about ensuring you have the right foundations in place for peace of mind and financial security. If you couldn’t work tomorrow because of injury or ill health, how long would your financial resources last? Would you want to end up reliant on government support? It’s not a lifestyle I’d want and it’s not a lifestyle of choice for most people.
There is a perception that protecting your income is expensive. However, there are many permutations to creating tailored insurance cover that will fit your needs and your budget.
Three ways you can get your income protected and save money include:
Level and Stepped premiums.
Just as you can opt for a combination of fixed and variable rate home loans, it’s not an either / or these days in choosing stepped or level premiums [1]. Cover can be tailored so that you combine the benefits of level premium (that are consistent over time so you can avoid the additional cost in later life when you're more likely to claim) with the cost conscious stepped premium option.
Adjust waiting and benefit periods.
The longer the waiting period, the lower the premium. However, with a longer waiting period, the more reserve cash you’ll need to cover your bills between the start of your injury or illness and the first claim payment.
The shorter the benefit period, the lower the premium. However, depending on the nature of the illness or injury, you may need to be on claim for a period longer than the benefit period.
Pay annually.
Most insurers offer discounts for paying premiums annually. A key issue here is to know that you have the funds available each year at policy anniversary. This is a great cost saver for those who are good at budgeting or generally have available cash reserves. (If you’re going to pay by credit card and then spend 12 months paying it off, this is NOT a cheaper option!!).

Discuss your specific requirements with us today to find the best complement for your situation.



[1] Level premium doesn't mean your premiums are guaranteed or do not change. Level premium rates may increase over time due to rate increases, CPI increases and policy fee increases. However, unlike stepped premium, level premium (excluding CPI and the policy fee) doesn't go up by age-related increases.