When it comes to the underwriting of your income protection policy, many factors come into play to influence the overall cost you’ll pay. Don’t worry, we list them right here!
What we ask to generate results on our website
- Date of birth
- Smoker status
- Gross annual income
Along with this information, we’ll need you to make some decisions about the kind of product you want to take out.
- Benefit amount. The gross amount you’ll receive each month in cash. You’ll receive up to 75% of your monthly income if you choose, plus you may also receive an additional 10% contributed to your superannuation.
- Benefit period. This is the period of time you could potentially receive a benefit for. Your benefit period may vary from a set number of years to specific age.
- Waiting period. Is the period of time between when you are first unable to work due to illness or injury, until you are eligible to receive a benefit payment. Waiting periods can vary from days to months and even years. Shorter waiting periods are more expensive
- Indemnity Value: You’ll have to prove your income at time of claim, and this will impact what you receive as a benefit. This generally suits those who aren’t worried that their income could change over the years. Benefit payments are assessed at the time of application.
- Agreed Value: Your income is assessed, and the amount you’ll receive as a benefit is agreed on, when you first take out cover. This generally suits self employed customers, or anyone concerned their income will change over time.
How does my health affect my income protection application?
When you apply for income protection, your application will need to be underwritten by the insurer. This is the entity that is accepting the risk of insuring you, in exchange for monthly premiums. Here are some of the things that affect your premiums:
- Pre-existing medical conditions
- Risky occupations
- Risky hobbies and travel pursuits
- Risky lifestyle choices (e.g. smoking)
The information provided here is general only and does not consider your personal objectives, financial situation or needs. Before you decide to purchase a product, it is important to read the relevant PDS.