Knowing how to save on something as important as protecting your income is like getting the best of both worlds. There are things that you should know about how to navigate your way to quality income protection insurance without having to pay through your nose. Here are six tips that can help you do this.
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.