Reduce Your Income Protection Premiums

Published: April 2, 2014

Did you know there are a number of steps you can take to reduce your income protection premiums? Many people have to cancel their income protection policy when they can’t afford their premiums any longer. We have come up with 6 steps  to help you save on their premiums, so you can keep your cover.

Policy Maximum Monthly Benefit Percentage of Income Covered Benefit Period Waiting Period  
NobleOak Direct Income Protection AIA
2 years or up to age 65
30 or 90 days
Receive up to 75% of your monthly income with Income Protection Insurance. Cover essential living expenses when you’re unable to work due to an illness or injury. Consider the PDS. Issuer is NobleOak Life Limited ABN 85087648708. AFSL 247302.

Policy Details:

Annual Premium $1197.36
Monthly Premium $99.78
Level of Cover $6,250/month
Waiting Period 30 Days
Benefit Period To Age 65

Step 1: Increase your waiting period

Step 2: Decrease your benefit period

Step 3: Remove CPI increases

Step 4: Only cover what you need

Step 5: Compare quotes

Step 6: Remove unnecessary options 

Save By Comparing Income Protection Quotes

Free Comparison Free Comparison
Customised Quotes Customised Quotes
No Hidden Fees No Hidden Fees
Calculating your quotes

Step 1: Increase your waiting period – Save up to 49%!

The most important question to ask is how long can you go without an income? The answer to this question will determine what waiting period options will be most suitable – from 14 days to 2 years.

Monthly benefit Annual Premium – 30 day waiting period Annual Premium – 90 day waiting period
$8,000 $1024.44* $513.24*
$7,000 $931.80* $471.60*
$6,000 $812.64* $418.20*
$5,000 $315.00* $315.00*

Step 2: Decrease your benefit period – Save up to 23%!

The longer your benefit period is will make your premiums more expensive. While to age 65 is a popular choice, you may wish to reduce your benefit period to 2 years or 5 years to make it more affordable.

Monthly benefit To Age 65 Benefit Period 2 Year Benefit Period
$8,000 $1024.44* $784.80*
$7,000 $931.80* $716.04*
$6,000 $812.64* $627.72*
$5,000 $315.24* $315.00*

Step 3: Remove CPI Increases

Each year, your cover will automatically increase according to rises in inflation. You can opt out of this increase if you wish, which will stop your premiums from increasing due to the CPI increase.

Step 4: Only cover what you need – Save up to 66%!

The first question you should ask yourself is how much do you need per month in order to cover your monthly obligations and living expenses. While income protection can cover up to 75% of your salary, you may not necessarily need this amount. Carefully decide what amount of cover would be most suitable for you.

Step 5: Compare Quotes

The first and most important step you can take is comparing quotes from a range of insurers. We compare some of the leading insurers in Australia who offer a number of products, benefits and options at a range of prices.

Insurer Monthly benefit Monthly Premium
Insurer 1 $6,250* $99.78*
Insurer 2 $6,250* $100.94*
Insurer 3 $6,250* $103.62*
Insurer 4 $6,250* $108.12*
Insurer 5 $6,250* $110.34*

Based on:

  • 30 year old male
  • Stepped Premiums
  • 30 day waiting period
  • To Age 65 benefit period 
Monthly benefit Annual Premium
$7,000 $931.80*
$6,000 $812.64*
$5,000 $315.24*
$4,000 $315.00*
$3,000 $315.00*

Step 6: Remove unnecessary options

Income protection generally offers a number of additional cost options such as bed confinement and day 1 accident cover. Considering removing some of these options to reduce your premiums.

Please note that while premium and saving amounts are based on real quote examples, they are examples only and may not be indicative of actual cover and savings available.

Compare Your Income Protection Options

Ask an Expert?