From a monthly benefit of $1,500 through to a maximum of $60,000, we can get income protection cover for most occupations!
For the majority of cases no medicals are required, except if you are a very high income earner, or have a preexisting medical condition.
If you need to claim, it should be as easy as possible. We help you with the paperwork and deal with the insurers on your behalf
The application process ensures you know what you are covered for at the point of application, so no surprises at the claim stage.
We will always provide you the lowest price, based on the Income Protection features you require
Our dedicated team has one key goal – to provide you with the highest levels of service from your initial enquiry, all the way through to claim
What is Income Protection?
If you are not able to work due to an illness or injury, Income Protection Insurance can provide you with monthly payments of up 75 per cent of your salary. This benefit can help cover your bills and other expenses whilst you recover and go back to work. You don’t want to have to think about how you will pay your bills during this time!
Why do I need Income Protection Insurance?
Income protection insurance replaces your income when you’re not able to work because of an illness or injury. This type of insurance is suited to both:
● Small business owners or those that are self-employed, as your income typically depends on your ability to work., and;
● Full and part time employees working more than 25 hours per week, in regular employment and receive a regular salary. This is especially beneficial if you are forced to not work for a considerable amount of time due to a condition.
Income Protection Insurance can help protect you from financial worry when you’re unable to work due to an illness or injury.
How much does Income Protection Insurance cost?
Your premium costs vary based on some things that you can influence, and others that you can’t. The key things that affect the cost of the policy are:
● Your Age
● Your Occupation, and how risky this is deemed to be
● Whether you smoke or not
● The Monthly Benefit that you are taking out – the higher the benefit, the more that the insurance costs
● The Waiting Period – the shorter the waiting period, the higher the cost of the insurance, the longer the waiting period, the lower the cost
Whilst you can’t change your age, you can change whether you smoke, your waiting period and your benefit period.
What is a 'waiting period'?
The waiting period is the period between the time you make an insurance claim and when you receive your first benefit payment. Common waiting periods are 14, 30, and 90 days. In general, the shorter waiting period you elect, the more expensive your premiums will be.
When deciding on your waiting period, you may also take into account the amount of savings you have, as well as your leave credits at work, as these might help you choose a longer waiting period, and thus lower your premiums.
What is a 'benefit period'?
As the name would suggest, the benefit period is the length of time you will receive monthly benefits. This can vary anywhere from two years through to age 70 with longer benefit periods costing more.
Taking into account your savings and assets that you have easy access to might enable you to choose a shorter benefit period. However, we recommend that you choose the maximum benefit period you can afford so that you won’t be forced to dip into your savings or sell your assets in case of an emergency. This will allow you to keep and use them for what you originally intended, such as for your children’s college education.
Should I Get a Stepped or Level premium?
When you choose Stepped premiums, your premium costs increase annually. This means premiums are cheaper initially, but increase as you get older. Level premiums are where the premium costs remain constant every year (except if taxes or monthly fees increase).
Over the long term, Level premiums will usually be cheaper, so a key consideration is how long you think that you will hold the policy for. If you are younger, the price difference between Stepped and Level premiums can be small, however every case is different.
Should I get an Agreed value premiums or an indemnity premium?
When you choose an Agreed Value insurance policy, you are locking in your monthly benefit with your Insurance company ‘Agreeing’ to pay the monthly benefit, irrespective of what you are actually earning if you were to put in a claim. You may be required to show proof of your income at the time of application. This may be suited to you if you are selfemployed or if you experience significant fluctuations in your monthly income (e.g. consultants).
The benefit amount in indemnity insurance is based on your highest average monthly income during a specific period before you make an insurance claim – usually between 1 and 3 years dependant upon the Insurer. Thus, if you are on a regular wage, and your income doesn't fluctuate, this can be a cheaper option. Of the two, the agreed value insurance results in higher premiums.
How Much Cover Do I Need?
Whilst income protection insurance can cover you up to 75 per cent of your monthly salary, you don’t necessarily have to take out the full 75 per cent of cover. There are a number of things you have to consider when deciding on the amount of cover you need:
1. Your monthly expenses. This is one of your most important considerations, since income protection insurance is meant to replace your income. Thus, calculate your monthly expenses, including your groceries, utilities, and mortgage and credit card debt repayments.
2. Your savings. If you have considerable savings that you can access quickly, then a smaller cover amount could suit you. However, it is recommended that you choose adequate cover that won’t require you to dip into your savings.
3. Your future plans. Are you about to send your children to school or are you planning on getting married soon? Consider these when determining your cover amount.
When deciding on your cover amount, you can seek the guidance of a SAVE U professional to help you run through the different scenarios available.
How can I pay for my Income Protection Insurance?
You can pay for your Income Protection Insurance either from your own disposable income, or from your superannuation fund. Both of these have advantages and disadvantages. Paying directly yourself, this money is taken from your disposable income, so you'll have less money to spend every month. Paying through your superannuation means that it doesn’t affect your disposable income. However, the products paid through superannuation do not have the same level of features and benefits as a policy paid outside of Super.
Are there Tax Benefits by getting Income Protection Insurance?
Premium payments for income protection insurance are tax deductible if you paid for them yourself, i.e. from your disposable income. You can claim the deduction when you complete your tax return. However, the Australian Taxation Office (ATO) states that you cannot claim a deduction for your premium payments if your policy is taken out through your super and your premiums are deducted from your superannuation contributions. It's always best to talk to your accountant about your own personal tax situation, as each individual’s tax situation is different.
If something was to happen to you, what would it mean to your family? Life Insurance can be used to pay off any debts you have and ensure the plans you have made for your family can continue.FIND OUT MORE
We guarantee to match or beat any Direct or Retail Life Insurers price on a comparable policy. The Direct or Retail Life Insurers price must be a fully underwritten existing policy / quote covering you for comparable insured events, and the same cover level. This offers excludes Level Premiums unless the level premium is for a new policy being taken out. This offer excludes group policies such as those sold through superannuation funds. You may be required to provide proof of your current policy / quote prior to being able to apply for the cover through saveu.com.au. If for some reason we cannot match or beat your existing policy, we will reward you with $100 cash.