How is income protection calculated?

It’s a good idea to get a rough understanding of your expenses before you get an income protection quote.

You should also be aware of your choices, as these can affect how much you get and when you get it. 


For example, you can tailor your policy according to:

  • Waiting periods
  • Benefit periods
  • Policy type (indemnity value or agreed value) 
  • Additional benefits (like hospital cover)

 

How much does Income Protection Insurance cost?

Here are some of the factors that can influence the cost of your income protection policy:

  • Age – any age between 18 and 60 years is generally insurable within minutes
  • Health behaviours – this can include smoking and the use of certain drugs
  • Occupation – in many cases this doesn’t matter, but if you work in a risky environment this may bump up your premiums. Be assured that InsuranceLine income protection insurance can cover a huge range of occupations
  • Sick leave entitlements – paid sick leave periods will cover you for short periods of time, in which case you won’t need your income protection insurance to kick in immediately
  • Savings – this will influence how long you could get by without changing your lifestyle or selling off liquid assets. Conversely, if you live from pay day to pay day, you’d want short waiting periods built in to your income protection cover

Depending on what you want your income protection to cover, premiums can be as little as a couple of dollars a day. Your cover should account for expenses like:


  • Rent or mortgage
  • Vehicle and transport (petrol for your car or fares for public transport)
  • Household expenses (bills for water, gas, electricity, internet, phone, rates)
  • Food and drink
  • Education fees or childcare
  • Entertainment (clothing, concerts, movies, DVDs)

 To find out more, get an income insurance quote online or give us a call on 13 77 87.