6 ways to save on your income protection

Published on November 25th, 2020
  Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
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1. Never settle

It seems like a no-brainer thing to do, but it is easy for people to get swept away by the price tag of their policy instead of the quality that comes with it. This means even if you find a good deal that has features that you agree with, always compare. It could help you save a hundred dollars or more. Find something that fits your needs and comes with extra features that will be useful to your needs. This also means checking to see that the terms, stipulations and qualification criteria all apply to you.

2. Keep things fixed

Life is uncertain, but your policy doesn’t have to be. When choosing the features of your policy you will be given the opportunity to choose between a fixed and variable rate. A fixed rate works for people who want to pay a fixed amount throughout the life of the policy, which means you can budget for it. However, if you are looking to save when the rate drops then a variable rate will help you achieve this. Always keep in mind to find a rate that is suitable for you financially.

3. If possible bundle up

Two policies are better than one. Income protection can be bundle-up with various life insurance policies to ensure that you get adequate cover for whatever spanners life decides to throw in the works. You could consider coupling your income insurance with redundancy cover, Total and permanent disability cover (TDP) and other life insurance policies that are applicable to you.

4. Small white lies will catch up

When applying for any policy it will be within your own best interest to be honest about your health condition and your medical history. Being tempted to leave things out or straight out lie when you are going through the application process can end up costing you. This will not only comprise your health or wellbeing, but it could end up making your policy null and void. This means if your insurer finds out that you have been leaving things out or submitting false information you could end up losing all the money you have invested in the policy.

5. Cut back on things that compromise your health

Your health, age, and gender are some of the few factors that an insurer will look at to determine your premium. If you are a smoker, a heavy drinker or a participator in activities that could impair your health this could cause your premiums to increase. If you are looking to save on your premiums it is time you evaluate your lifestyle and choices to help you save on your premium.

6. Extending the waiting period

To help you cut down the cost of your premiums you could opt to have the waiting period extended on your policy. Depending on your insurer and the type of policy you choose, extending your waiting period from 14 days to 30 days can help you save up to 40% off your premiums.

However, you need to keep in mind that you need to have finances in place that can make ends meet while you wait for the policy to pay out. If you are married it’s important to discuss such extensions with your spouse in order to figure out how you will make your reliance on one source of income work.

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This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.

The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.

Savvy is partnered with Compare Club Australia Pty Ltd (AFS representative number 001279036) of Alternative Media Pty Ltd (AFS License number 486326) to provide readers with a variety of life insurance policies to compare. Savvy earns a commission from Compare Club each time a customer buys a life insurance policy via our website. We don’t arrange for products to be purchased from these brands directly, as all purchases are conducted via Compare Club.

Savvy does not compare all life insurance policies or providers currently operating in the market. Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy.

For any further information on the variety of insurers compared by Compare Club or how their business works, you can read their Financial Services Guide.

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