1. Think about how you structure your policy – it affects your premium
A way to minimise your premium may be to reduce the benefit period of the payments, for example you may decide to take out a policy that covers you for 2 years instead of 5 years.
2. Understand your options
There are two ways an Income Protection Insurance policy can be structured – on a Stepped or Level basis. A Stepped policy will see your premiums calculated in line with your age. Alternatively, a Level premium structure will see your premiums higher at the outset of your policy period, but remaining constant as you age.
3. Don’t forget – premiums are tax deductible!
One of the benefits of Income Protection Insurance is that the cost of the premium is generally tax deductible at your marginal tax rate. This makes Income Protection far more affordable.