Income and mortgage protection are some of the more complex types of cover in the marketplace as there are many optional extras and variables that can affect your premiums such as; payment periods and benefit wait periods. As a rule of thumb, the longer the benefit and wait period, the less your associated premiums will be. However, with insurance it is not always about finding the best price, rather it is about finding the right co ver as the wait period and benefit period you select could be the difference between financially surviving or financially struggling.

The wait period associated with income protection is the amount of time that you will need to ‘wait’ until you receive money from your insurer should you make a claim. Generally, a wait period can range anywhere from four weeks all the way up to two years. However, the most common recommended wait periods are four weeks, eight weeks and twelve weeks.

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When selecting the wait period for your income protection, it is important to consider the following factors:

  • How much sick leave and annual leave do you have owing?
  • Do you have any savings that you can access until you receive a payment from the insurer?
  • Can you potentially rely on your partner’s income for a period of time?

In regard to the benefit period associated with your income protection, this determines how long you could potentially claim a monthly benefit from your insurer. In general, your benefit payment options range from one year all the way up until age 75.

When selecting the benefit payment period for your income protection it is important to think about how long it may take you to financially adjust to a situation where you are unable to return to work in the longer term. For example, if you could not return to work in the foreseeable future, how long would you or your family need to have a replacement income for? Could you downsize your home to reduce your debts or could your partner continue working to support you? Perhaps you are close to retirement age and you would survive financially if you had a shorter benefit payment period?

It is important to note that most insurers will let you increase the wait period or decrease the benefit period on your income protection without having to go through an underwriting process. However, requests to decrease your wait period or increase your benefit period will most likely result in a new application with the insurer and there is a chance that your request will be declined if you have developed serious health conditions or have a riskier occupation since taking out your original cover.

As the above outlines, it really is a balancing act to selecting the right benefit period, and once you combine this with a wait period, it can seem like your options are endless. However, an experienced adviser can help you decide what wait period and benefit period combinations may be best for your income protection policy all the while taking your budget into consideration.

 

Rachael Manson
Rachael Manson
03:27 30 May 20
Alan has been brilliant to deal with and extremely patient as we worked through the changes that we were seeking for our life cover and income protection requirements.
Celia Grigg
Celia Grigg
23:36 21 May 20
Hayley was great, from responding to my initial inquiry to finalising my policy. She provided good information and communicated with me every step of the way - efficient, thorough and friendly. She went above and beyond.
Wang Emily
Wang Emily
01:59 19 Apr 20
Hayley has been very helpful and professional with her insurance services, she is committed to work for the best interest of her clients , friendly to deal with and flexible to suit clients’ requirement. Definitely Recommended!
Toko Ngakiau
Toko Ngakiau
20:19 29 Mar 20
I am very wary of random calls about insurance, but I found Daniel from IronOak to be very transparent and a pleasure to deal with.On all occasions he was able to come out and visit us. He explained in detail what we were looking at, and offered a number of comparisons. HIGHLY RECOMMENDED
Hannah Lawrence
Hannah Lawrence
21:00 15 Mar 20
Hayley was very efficient and always delivered on her promises. She put together a good package for me. I would highly recommend Hayley.
Jay Nimbus
Jay Nimbus
08:11 15 Mar 20
Daniel was great to deal with and made seemingly complicated decisions a lot simpler than I expected. I had been stressing about it for a while, wish I had got in touch sooner. Much thanks!
Annette Page
Annette Page
22:39 01 Mar 20
Prompt, professional, pragmatic advice and service. Many thanks.
CrazySmurf Azrial
CrazySmurf Azrial
11:20 28 Feb 20
Hayley was awesome to deal with, answered all my questions and followed up with me weekly to keep me informed throughout the whole process. It can be daunting but she made the process easy. She was easy to talk to and didn't feel pressured.Thanks Hayley for organising everything and helping me through the whole process.
Paul has helped me to find the best option for my family insurance. He made everything easy.
Trixie Lawton
Trixie Lawton
15:55 25 Dec 19
I found Hayley very pleasant to speak to and was explained everything in great detail and in easy terms
Kayleigh Price
Kayleigh Price
22:12 16 Dec 19
Paul was very easy to deal with and made income protection insurance seem much clearer. He gave sound advice, was efficient, friendly and I would recommend him to anyone.
Sunil Kadri
Sunil Kadri
23:23 01 Dec 19
Paul did alot of work to find the right policy for me, was very patient as I wavered, and even helped me with the right questions to ask of my insurer on their parallel policy. Overall he proved an excellent broker whom I'd gladly recommend, and go back to myself.

 

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