5 Important Considerations When Comparing
Income Protection Insurance Quotes

If you’re looking at taking out your first income protection policy, there are 5 things to focus on whilst making your comparison:

#1 Are You Comparing Apples with Apples?
You’ll need to make sure that you’re comparing quotes for income protection policies with the same features. Make sure that you choose the same:

• Value type – whether Agreed or Indemnity Value
• Waiting Period – 14, 30, 60, 90, 180 or 365 days
• Benefit period – 2 years, 5 years, to age 65, or other options
• Included options – some policies include options in the base price that other policies ask you to add as an extra. For example, some companies offer superannuation guarantee contributions as part of the standard offering, for some you have to pay extra.

#2 Think About Your Entire Insurance Profile
Many companies offer a discount if you have three or more insurance policies with them. Grab a quote to determine your overall position if you were to switch your car and home insurance over to your new income insurance provider, and get the discount. This is usually around 10% – not to be sneezed at!

#3 Check the Difference Between Stepped and Level Premiums
If your potential policies offer both stepped and level premium payment options, make sure you get quotes for both. Level premiums offer much better value if you’ll keep your policy in the long term (usually 10-15 years or more); otherwise stepped premiums are better.

#4 Check How Much You’ll Pay in the Future
If your insurance is very cheap now, but will be exceptionally expensive as you age, it may not be the best overall value. Ask each company for quotes at the oldest age you expect to have your income protection insurance.

#5 Compare Retail with Superannuation-Based Policies
Many superannuation funds offer income protection insurance to members. You should compare both standard retail and super-based policies, as each can suit different circumstances.

While super-based policies generally offer a limited range of options, they can be cheaper for people who have existing health issues.

If you are looking for flexibility in your plan, or you are relatively young, healthy and a non-smoker, you might find the retail income protection offers better value.