Income protection - how do I get some?
You have three main options when it comes to buying insurance:
- You can buy direct from an insurance broker
- Direct from an online provider, or
- Through your super fund.
There are pros and cons to each method, which we’ve summarised in the tables below. You can also use comparison sites like Canstar.
|Can be purchased at your convenience, day or night||If you want to speak to a human, it will likely be time consuming and costly|
|No waiting time for insurance documents||The onus is on you to find out the answers to your questions|
|Some online providers offer chat services to answer your questions promptly, within business hours||When it comes to making a claim, you have to do all of the leg work|
|Potentially cheaper than other providers as you’re buying direct||You need to be computer savvy|
|Harder to take advantage of multi-policy discounts|
|Often, policies aren’t underwritten until it comes to making a claim, when it’s too late to realise you’re not covered for something you thought you were|
|Personalised service – the same person deals with your requests/questions||They work on commission. This means they may be motivated to sell you something purely because it earns them a higher commission|
|Makes recommendations on coverage and policies based on your unique needs||Their services come at a price|
|Tend to be more knowledgeable about what’s out there and who offers the best coverage for the best price|
|Can help you bundle policies together for better rates|
|You know exactly who you can call when you need help|
|They underwrite your policy at the time of approval, so there’s less chance of a nasty shock when it comes to making a claim|
|Can be cheaper than other providers due to bulk buying power of funds||The amount of cover may be less than what you need, and not all types of insurance are available through your super|
|No medical examinations required to take out basic cover, and they usually include TPD and income protection insurance||As premiums are taken from super contributions, there’s less money to invest and therefore less money when it comes to retiring|
|Tax-effective as payments are made from pre-tax dollars (or payments are tax deductible for the self-employed)|
|Easy to manage – premiums can be deducted from super contributions|
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