Income protection is a great way to cover yourself and your loved ones financially if you are unable to work due to illness or accident. You can easily get an income protection quote online to secure yourself. This policy works by ensuring that you will receive a certain amount for months that you won’t be able to work.
Various factors impact the cost of income protection insurance. Some of the factors are external, which you cannot control while some things can be changed by simple life choices.
Here are some factors that influence the cost of income protection insurance:
Age is the number one factor that influences the premium of income protection insurance. If you are young, you have to pay low premiums. The older you are, there is more risk of becoming ill or not recovering soon due to aging, which will impact your premiums.
Your current health condition also determines the cost of premium of your income insurance cover. The medical illness or injuries you already have will be taken into account. The premium will be high if you have any medical issues like the risk of falling sick again in increased.
Your job description and duties will influence the premium and waiting period to receive the benefits of income protection policy. People who have high-risk jobs like underground mining or skydiving instructor will have to pay higher premiums than people with low-risk jobs like banker or teacher.
Not just the occupation type but your past work record may also impact the cost of insurance. Those who change their job frequently are likely to pay higher premiums than those who are stable.
If you are an adventurous person who loves car racing, climbing mountains, base jumping or any other extreme sports, you will probably have to shell out substantially more for the income insurance premiums as you have the added risk of injury.
It’s not uncommon for smokers to pay more than twice as much as non-smokers for comparable coverage because of the increased risk of having medical issues like lung cancer. However, if you haven’t been smoking for at least 12 months, you will be considered a non-smoker. Smoking can harm your pocket in many ways, so kick the habit now.
You can choose a waiting period of either 14 or 30 or 60 or 90 days on your income protection policy. The extended waiting periods lead to lower premiums, and the shorter the waiting period; the more expensive your premiums will be. 30 days waiting period is the most common among insurers.
The amount you choose to insure directly affects the premium charged for the income protection policy. The buyers who want basic benefits like limited monthly compensation will be offered cheaper benefits. If the buyers want to add covers such as permanent disability cover or critical covers will be charged higher.
About the Author
Christian Taylor, is an assistant insurance agent at Aspect Underwriting– best income protection insurance company in Melbourne that provides a wide range of insurance brokering and cover services including online Accident, Health, Trauma, and Income Protection quotes. Reach out to him at firstname.lastname@example.org to discuss your insurance needs.