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Income protection - how do I get some?

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You have three main options when it comes to buying insurance:

  1. You can buy direct from an insurance broker
  2. Direct from an online provider, or
  3. 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.

Online

ProsCons
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 documentsThe 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


Broker

ProsCons
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



Superannuation

ProsCons
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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