Cheapest Income Protection Insurance

GOLD WINNER ASTERON As well as providing flexibility, a host of extras can even reduce the cost

When it comes to your best asset, it’s easy to assume your home or super tops the list. In reality, though, your ability to earn a regular income is what keeps day-to-day life ticking over. If your income abruptly came to a halt, chances are your lifestyle would be dramatically impacted. ME Bank research shows around a quarter of Australian households have less than $1000 in cash savings, so relying on emergency money simply isn’t an option for many people.

Income protection insurance provides valuable cash, typically worth around 75% of your monthly income, if you can’t work because of illness or injury.

Asteron Life has climbed from third place in 2018 to take out the top position this year with a policy that’s packed with plenty of extras. Built-in claims indexation means the benefit increases in line with inflation. It’s possible to increase the level of cover without further medical checks if your situation changes – for example, if you have children or take out a mortgage.

A range of wait periods is available – from 14 days to two years, and the payout period can also be tailored from two or five years to 65 or 70. These different options all offer opportunities to reduce premiums. Asteron Life lets you work (if you can) 10 hours or less per week (while meeting the definition of totally disabled) without reducing the benefit payment, even if you earn income in those 10 hours.

MLC has a fun On Track pro- gram available with its income protection insurance. Take out a policy, sign up for On Track and receive a 5% upfront discount. From there, you just need to notch up 37,500 steps a week for 30 out of 40 weeks (recorded on a Fitbit or other eligible device) and the discount is retained in the following year.