How Do I Know What Level Of Cover Suffices When It Comes To Income Protection?

How Do I Know What Level Of Cover Suffices When It Comes To Income Protection?

The majority of us would struggle to pay our bills, debts or mortgages if we were to fall ill or get into an accident. Fortunately, for many of us there is a solution that allows us to be protected financially if a situation like this is to occur. You can use an income protection policy to protect yourself financially in such unforeseen circumstances.

An income protection insurance policy assures that you will have a regular income, for the benefit period you select when getting an income protection insurance quote. Depending on your policy, this type of insurance can cover up to 75% of your pre-tax income. However, some of the best income protection insurance companies can pay out up to 85% of your income, during the benefit period.

Ensuring you have a sufficient level of cover when you have purchased an income protection policy, all begins with your income protection insurance quote.

Different insurers will always use different criteria when determining the terms and benefits, when giving you an income protection insurance quote. Which is why it is a good idea to look around and do some research. The best way to get the top income protection insurance quote is to speak with an independent broker or general insurance agency. You can ask them to guide you through the details of the available policies so that you choose the right one. When you are searching for an income protection policy quote, you might need to look carefully and thoroughly if you have a medical issue or job that is not covered by a standard policy. This is why you should always read the PDS (product disclosure statement) when provided with an income protection insurance quote.

If you are new to searching for an income protection insurance quote, and you want to be sure the level of cover you are getting is sufficient, then start here.  

Below are some factors that can all have an impact on your income protection insurances quotes, without taking these into account your level of cover may not be sufficient:


The cost of your income protection insurance quote will vary depending on several factors. A healthy person may pay less to insure themselves, and vice versa. As your policy will be paid out only in the event of you falling ill or getting injured during the policy period, it makes sense that some pre-existing health conditions might affect the cost of your premiums or may be excluded from your coverage. 

A pre-existing health condition can prevent you from being able to purchase some premium income protection insurance policies, or even stop you getting an income protection insurance quote in the first place. That said, some insurers will simply insure you for everything other than your pre-existing health condition(s).

Benefit & Waiting Period Length

In the case of an income protection insurance quote, the benefit period is a huge factor. When getting an income protection insurance quote, you will be able to see that a short-term benefit policy (usually one or two years) will be cheaper than a long-term policy (five years or To Age 65). The longer an insurer is required to pay a benefit, the more expensive the premium, which is why long-term cover is more expensive. 

The same applies to waiting period length. The shorter the waiting period, the more expensive the premium. So if you believe you can last for a longer period (e.g. 60 or 90 days) without an income then you should choose the longer weighting periods to save money. Alternatively, if you can’t last long without an income, select the shortest waiting period (usually 14 or 30 days). It might cost more but it will be a far more meaningful benefit if needed.

When ensuring that your cover is sufficient for your lifestyle, make sure your benefit & waiting periods are suited to your budget, weighing up the likelihood of an illness or injury preventing you from working lasting longer than two or five years.


When you are getting an income protection insurance quote, you always want to make sure it covers your specific occupation. You will usually need to categorise your occupation into two types when getting an income protection policy quote: white collar (the cheapest) and blue collar (the most expensive). Not only will your choice impact the price of your policy, but it will impact the way that your benefit could be paid out, and the insurance companies’ evaluation of if you are able to continue working or not. Make sure whatever option you select is accurate for you, or you could risk having your policy voided due to incorrect disclosure.

When Australians are considering purchasing income protection insurance to protect their financial stability, they should consider their health, occupation, and the benefit & waiting period lengths, to ensure that they will have a sufficient level of cover for their preferred lifestyle.

When looking for the right place to purchase an income protection policy or get an income protection insurance quote look no further than Aspect Underwriting. Aspect UW can provide you with more information on how income protection works and how it contributes to your financial security, you can also contact professionals from Aspect Underwriting today, to discuss further.

Leave a Reply