Reasons Why Income Protection Insurance Costs Will Keep Rising, But It’s Still Worth Buying

 

While many changes are happening throughout the income protection insurance space, there is no need to panic. If you are looking to purchase income protection insurance soon, you just need to be informed on what is happening and your best options when purchasing.

We understand and always convey that income protection insurance is so important to have. It is one of the most essential insurance policies, as it covers your most important asset, your income. 

If you didn’t already know, income protection policies would allow you to receive 75% of your income during your benefit period if you cannot work due to injury or illness. So, you can still pay your bills and stay in a stable financial situation if you are ill or injured.  

However, there is a hesitancy around income protection insurance in Australia at the moment. 

Currently, life insurers are pushing up the price of their income protection insurance premiums due mainly to a concerning claims trend that is seeing significant losses to the insurers. In addition, the challenges and uncertainty created by the global pandemic and the subsequent economic impact, new APRA regulations and low-interest rates are all adding pressure to pricing.  The pandemic, especially, caused a considerable amount of disruption across many industries, including insurance. 

The increases in premium and/or reductions in cover & limits offered is turning away Australians from purchasing such important insurance. 

 

In order to protect your family from a worst case scenario, you should have income protection insurance. Credit: Unsplash

 

However, even though the costs are higher, it is still worth buying an income protection policy. Why? Because there is nothing more important than stability during a time of injury or illness. 

Luckily for you, we have a helpful tip to assist you in purchasing a policy without the rising costs. Most of us would naturally purchase our income protection policy from a life insurer, but these are the insurers who are increasing the costs and who are under pressure from the Regulator to return their products to a profitable position. 

Many people aren’t aware that income protection is one of the few products that can be provided by both Life and General Insurers As the current economic conditions for these insurers currently differ, now is the time to look into both options. 

General insurers such as Aspect Underwriting work hard to keep their premiums at a reasonable price, and they aren’t currently hiking them up like their life insurer counterparts are doing. 

Among the general insurers, Aspect Underwriting is one of the very few companies that pay 85% of your income as a monthly benefit. In comparison, most others will pay 75%.

Aspect Underwriting can offer you one of Australia’s best income protection quotes from the general insurance sector. Not only do they provide a quick and easy online quote, but you can also buy your policy online without the hassle of having to discuss the policy in person or on the phone. 

In a world where our lives have been so unpredictable, it is essential to protect our income. Get yourself an income protection policy from Aspect Underwriting and move forward into a more secure future for you and your family. Visit their website now to get a quick and easy quote. 

 

Mike Wallis

Mike has over 25 years experience, having spent his first seven years working as a Broker at Jardine Lloyd Thomson in Melbourne and in 2002 was transferred to JLT’s Accident and Health Department in London. For four years (2002 – 2005) Mike was a specialist A&H Lloyd’s Broker and during this time developed excellent relationships with the Lloyd’s A&H underwriting fraternity. In 2006 he returned to Australia in a senior broking position with overall responsibility for Placement Strategy, including the implementation of underwriting facilities and the various authorities granted by Lloyd’s. Mike was the underwriter at two specialist Underwriting Agencies prior to founding Aspect Underwriting in 2016.

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