How Much Does Insurance Cost for a Sole Trader?

As a sole trader, your business and personal assets are mixed together. This makes conducting business both easy and difficult. When accidents happen, it is not just your business that takes a hit, you do as well. When building a business as a sole trader, insurance is key to ensuring long-term financial security, but the cost can vary depending on different factors.

These are things specific to your business, like the type of insurance needed, level of business risk, and any previous insurance claims.

We know that starting a business is tough, especially during a cost of living crisis, but that’s why we are here to help you choose the right insurance policies for you. Morgan Insurance Brokers are dedicated to building the perfect insurance policies for your business while keeping costs low.

Insurance for Sole Traders

Deciding what insurance you need as a sole trader can be a difficult task. It largely depends on what industry you are going into, though there are standard insurance policies that are recommended no matter the industry. These are:

Other industry-specific insurance policies to consider should be:

No matter what you go with, insurance is important for sole traders. It protects them from unexpected risks and liabilities while providing financial security and peace of mind.

Factors Affecting Insurance Costs

Asking how much your insurance will cost is like asking a fortune teller to predict the weather; it’s an incredibly complex question with no right answer. Without discussing the ins and outs of your business and providing you a quote, most insurance brokers will be hard pressed to give you any kind of straight answer. However, there are several factors that insurance companies take into account which can affect the cost of your insurance:

Industry and occupation

Generally speaking, industries like construction, healthcare, and IT tend towards having higher premiums. This is because they are considered high-risk, either because of the increased risk of injury or illness or the risk in data security.

Business size and revenue

You may be asked to declare your annual revenue when getting insurance for your business. The bigger your business, the higher your premiums may be. This could be because of a higher chance of liability claims from clients.

Location

Quite often, insurers will take into account location-based risks when looking into your insurance premiums. Things like crime rates, high risk of natural disasters such as bushfires or floods, the amount of claims made from other business properties in that area, and also if you have dealings in multiple states all affect your premiums.

Level of Coverage

If you want more insurance coverage for your business, this can also have an impact on the costs. Generally, having higher limits on liability equates to higher premiums. For example, someone who has a $30,000 liability limit on their insurance will pay a much lower amount than someone who has a $50,000 liability limit, not counting any other outside factors.

Claims history

Your premiums can increase if you had an insurance policy that you previously made a claim from. Claims affect future premiums regardless of the insurance company you were with previously. It is a legal obligation to disclose any previous incidents that influence the insurers decision to accept their risk.

Choice of insurance provider

All insurers have different price ranges, that is a simple fact, so whichever insurance package you choose will be priced differently for all businesses based on the information above. This is why it is essential to get quotes from multiple providers to make sure you are getting the best insurance package possible for your business.

Insure with Morgan Insurance Brokers

Working with an insurance broker means that you are getting specialist advice that goes far beyond what an insurance company would offer. They compare different insurance companies to tailor-make policies and so are getting the best and most cost-effective coverage possible for your business.

When you work with us at Morgan Insurance Brokers, we do all of the above and more. With more than 150 insurers working with us, we can craft the perfect insurance coverage at the lowest cost to your business.

Don’t let risk run your business, contact us for a free quote today and protect your future.

by jasper

Top Ways to Insure Your Sole Trader Business

We know starting your own business is tough, especially when there are so many different insurance options available and you have no idea where to start. For sole traders, it can seem daunting because not only do they need to protect their business but also themselves.

Getting insurance for your business, no matter how small, is always recommended. Insurance covers you in the case of unexpected financial loss which happens alarmingly often. Depending on the industry you have chosen, there are different compulsory insurance requirements. Otherwise most insurance options are optional but highly recommended.

When you look for insurance with Morgan Insurance Brokers, we make sure you and your business are well protected and have all the insurance coverage you need.

Why Sole Traders Need Insurance

As the simplest business structure for someone wanting to get their venture off the ground, sole traders make up a large portion of Australian businesses. According to the Australian Bureau of Statistics, about 61% of businesses in Australia are sole traderships.

While being a sole trader business can make things a lot easier, it also means that there is no legal distinction between you and your business. You are fully responsible for all aspects of the business, good and bad.

Insurance is incredibly important for you as a sole trader. Without it, you are fully liable for anything that happens in your business. Workers compensation is not valid for sole traders, so there are a range of insurance options recommended depending on the chosen industry.

There are a number of insurance policies sole traders need to know about at the beginning of their business venture:

Professional Indemnity Insurance

Professional indemnity insurance is an important and sometimes essential insurance policy to have for the smooth running of your business. This policy aims to financially protect you, your workers, and your business from any legal claims or allegations about any unsatisfactory advice or services given. This could be from unintentional errors leading to a clients financial loss, misunderstandings about what a product or service can provide or advice given, and any copyright claims.

The policy can cover legal costs, compensation for damages, and other losses incurred when defending your business in court; this could be against alleged or actual claims of negligence or professional breach of duty.

Business Insurance

This kind of insurance is arguably one of the most important for sole traders or small businesses. It can cover the business against significant financial loss, fires, theft, equipment breakdown, employee dishonesty, natural disasters, and accidents.

No two businesses are the same, just like no two business insurance policies! Having a policy tailored to your small business is essential to protect yourself from any unknown accidents that may set your business back financially.

Public Liability Insurance

When you have this insurance policy, it protects your business against claims relating to personal injury, property damage, and advertising liability brought against you by third parties.

For example, you have a shop full of shelving for a range of different boardgames and one of those boardgames falls on the head of a customer and they get a concussion. Any claims of personal injury against your business because of your negligence could be covered by your business insurance policy.

Personal Accident and Illness Insurance

When you have personal accident and illness insurance, the policy offers you financial assistance when an individual has an accident that results in injury, disability, or death.

If you fall ill or get into an accident while working and do not have insurance coverage, this can severely impact your business and potentially cause major financial setbacks, especially if you have no employees to cover your absence.

Income Protection Insurance

For a sole trader who relies on their business as their main source of income, this insurance policy is crucial. It is basically a safety net, providing an income source in times of need or health-related absence from work.

It is designed to cover a significant portion of your main income, replacing up to 70% of your gross income, so sole traders can meet their financial obligations. It is possibly the most important insurance policy for sole traders, self-employed professionals, and contractors.

Protect Your Business With Morgan Insurance Brokers

When you protect your business with Morgan Insurance Brokers, we do extensive research into your business. In doing this, we make sure you are getting the best insurance policies you need to conduct your business safely.

Our team specialises in insurance policies for small to medium businesses, and we take pride in building trust in our client relationships.

Are you looking for an insurance broker committed to safeguarding your business? Look no further. Contact us now for a free quote and start your journey with us today.

by jasper

Protect Your Online Business with Cyber Liability Insurance

In the digital age, protecting yours and your customers' data is of the utmost importance, especially if you deal with personal data like home addresses and contact numbers. Data breaches are on the rise in Australia, with thousands of breaches reported each year, meaning your business is at risk of having a cybersecurity incident.

The most notable data breach from the past few years was the Medibank breach that saw 9.7 million people’s personal details leaked to a well known ransomware group, highlighting the importance of cyber liability insurance. It is crucial for sole traders and small businesses to protect themselves and their business against unexpected financial risks surrounding cyberattacks.

What is Cyber Liability Insurance and What Does it Cover?

Cyber liability insurance offers a level of financial protection in the case of a cyber security breach. For instance, if a data leak does happen then the business will be liable for incident response, remediation, brand damage, litigation, compliance fines, and any customer damages.

Alternatively if ransomware or hackers wipe any data or lock you out of your system, cyber liability insurance could help reimburse you for any costs associated with the potential damage to your computer system or loss in business. Cyber insurance policies help reduce the costs of the fallout.

There are a handful of ways businesses get hacked:

  • Viruses: These are a type of malicious code or programme written into how a computer operates, intended to spread from computer to computer and give hackers the ability to destroy computer systems.
  • UI redress attacks: Known also as clickjacking, is when a hacker tricks a user into clicking a button they didn’t intend to so they download malware, viruses, transfer money, or purchase false products online.
  • Cookie theft: This is when hackers get access to cookie data and can get information like addresses, phone numbers, and other sensitive information.
  • Distributed denial-of-service (DDoS) attacks: These kinds of attacks are done by flooding an online server with internet traffic to try and stop users from accessing the services and sites.
  • Domain name system (DNS) spoofing: Hackers do this by changing the domain name of a website so that any users are redirected to a fraudulent website that could steal the users information.
  • Social engineering: Social engineering is the use of deception to try and manipulate someone into disclosing confidential or personal information for fraud. The most common type of social engineering is phishing, where an email has a link that downloads harmful software or redirects to a malicious website when clicked.
  • Missing security patches: Security patches are updates your computer needs to install so your computer is safe and protected from hackers. When a security patch is missing, leaving your computer open to cyberattacks.
  • Malware injections: Malware is an umbrella term for different programmes installed on computers and mobile devices with the intention of causing harm and finding data for financial gain. The most common type of malware injection is an SQL infection, where a hacker uses malicious code to manipulate a database into revealing information.
  • Password cracking: This one is simple, with a simple solution. Also known as password hacking, it is the process of using a programme to guess a password that is protecting a system.

Why do Sole Traders Need Cyber Liability Insurance?

Cyberattacks could happen to anyone, which is why it is best to be prepared for the fallout of a potential data breach. In 2024, business-targeted cybercrimes have been witnessed every 7 minutes in Australia. The ACSC itself has 77,600 reported cases of cybercrime, that’s a 15% increase on previous year. Cyberattacks cost Australian businesses a total of $33 billion annually.

All of these reasons and more are why sole traders need a cyber liability insurance policy. When it comes to cyber security, there is no such thing as IF, but WHEN.

What Can Cyber Liability Insurance Cover?

This largely depends on the insurance company. Not all companies are the same, which is why it helps to talk to an insurance broker for your insurance needs. A cyber liability insurance policy can cover:

  • Cyber extortion
  • Cyber espionage
  • Denial of service
  • Card skimming
  • Crimeware
  • Hacking

Why use Morgan Insurance Brokers?

When it comes to protecting your customers data and information, it is crucial to get cyber liability insurance so you are covered for any unexpected attacks. As with many things, insurance is there to help, but Morgan Insurance Brokers are there to help you. We are dedicated to getting you the best insurance protection possible for you to run your business stress-free.

Don’t let a cyberattack crash your business, contact us today as your next cyber liability insurance broker and get one step closer to safeguarding your future.

by jasper

Our Guide to Commercial Strata Insurance

Experiencing something like flooding, fire, or theft to your property can be a huge shock to a business. Not only has your livelihood been threatened, but you also have to deal with the financial fallout of the incident as well which can really set you back.

This is why commercial strata insurance is a crucial insurance policy to have. When you own your own business or apartment space in a strata-titled property, you never know what might happen. Insuring yourself against any surprise accidents is the smartest move to make sure you do not suffer any financial difficulties. As a strata insurance broker, we can assist in getting you the best residential and commercial strata insurance policy for your small business or situation.

What is Strata Insurance?

Unlike when you buy a house on its own block of land, when you purchase a property that’s part of a complex, or bigger unit block, it is usually part of a strata title. A strata-titled property means you have individual ownership over your lot (whether this be a private apartment or townhouse, or commercial office space) and shared ownership of the common property like the driveway, foyer, or elevators. The common property is then managed by a legal entity, usually a body corporate or strata company.

Strata insurance is then the insurance that the body corporate is obliged to take out to cover the building, common areas, and common property for both residential and commercial properties. Strata insurance is crucial to help protect their businesses assets and operations. It is a legal obligation to have strata insurance if your property is strata-titled.

Strata insurance differs from traditional business insurance because it does not insure private property, the coverage is strictly kept to shared spaces. Business insurance covers you for a lot more, including property insurance.

Why do you Need Strata Insurance?

Strata insurance is crucial because it covers the cost of repairing or replacing common property in a strata scheme, protecting all owners from significant financial loss.

As strata insurance specialists, we handle a lot of issues on your behalf, such as:

  • Property damage to the building and common contents.
  • Loss of rent to individual owners; or temporary accommodation costs if owner occupied in the case that the property was deemed uninhabitable.
  • Catastrophe insurance if the property was to be impacted by government declared catastrophes.
  • Public liability insurance on behalf of the body corporate if any claims are lodged against them for property damage or personal injury due to negligence.
  • Office bearers liability coverage for their decisions made on behalf of the owners.
  • Voluntary workers compensation covers costs for volunteers that get injured whilst working for the body corporate.
  • Machinery breakdown covers costs associated with machinery not working, like elevators or escalators.
  • Flood cover handles the costs of flood damage to the common areas.

On top of the above, it is a legal obligation to get strata insurance if you own a strata-titled property in Australia. The specific laws vary from state to state, but they all have a baseline that body corporates are responsible for securing basic strata insurance for their own properties.

Insure Your Strata Property with Morgan Insurance Brokers

As Australia's award-winning insurance broker, we have strata insurance specialists dedicated to ensuring your strata property is fully covered for any situation. Strata situations can be complex and difficult, which is why having a specialist on hand is key.

We handle all customers with the utmost diligence and commitment. When you broker your insurance with us, we work to make sure you get the best insurance coverage possible for your business.

Insuring through Morgan Insurance Brokers means getting award winning, professional service and top-notch insurance coverage in Australia. Contact us today for a free consultation, and our team of skilled professionals can tailor-made the best insurance policy for you.

by jasper

How does Fleet Insurance works?

As a specialist in fleet insurance, we know how risky owning a fleet of vehicles can be. You never know what might happen when you’re out on the road all day every day, the cost of repairs for vehicles aren’t cheap these days either. Multiply that potential cost by how much fleet you own for your business, and that is a potential financial landmine.

Having fleet insurance gives you that little bit of extra security in knowing you cover your vehicles in case of damages in accidents both on and off the road. Depending on your policy, insurance coverage can extend to third party damage and theft as well. At Morgan Insurance Brokers, we guarantee getting you the best fleet insurance coverage for your business.

Understanding Fleet Insurance and Why you Need It

Put simply, fleet insurance is a type of insurance policy that covers all vehicles. This could be anything from basic car sedans or hatchbacks, to vans, to utes, and even to trucks. By insuring your entire fleet with a tailor-made fleet insurance policy instead of individually insuring each vehicle separately, you could save yourself thousands of dollars in premiums.

One thing to note is that compulsory third-party (CTP) insurance (or Green Slip in NSW) is a legal requirement in Australia. Some states include this insurance as part of your vehicle registration, but other states like New South Wales and Queensland require you to have insured your vehicle with a pre-approved list of CTP insurers before registering your vehicle. CTP insurance is separate from fleet insurance and is usually not included in fleet insurance policies.

What Does Fleet Insurance Include?

Depending on which insurance policy you sign with, these are some of the standard coverages that come included:

  • Damage to own property: A comprehensive fleet policy will always cover any damage to the vehicle itself, whether that be your own fault or someone else’s fault.
  • Damage to property: If there is damage to any property caused by a vehicle in your fleet, the fleet policy will cover any damage costs regardless if there is damage to the vehicle or not.
  • Damage to other vehicles: Also known as third-party insurance, if you or another vehicle in your fleet has been in an accident involving another person, the costs can be covered by the fleet policy.
  • Theft: On average, a car is stolen every 11 minutes in Australia. When you have comprehensive fleet insurance coverage, you would be able to replace any stolen or broken-into vehicles.
  • Storm, hail, flood, and fire: With how common storms, flooding, and bush fires are in Australia, when you get fleet insurance you can rest assured knowing your car is insured for any natural disasters.

Though whether or not these policies are included in every insurance policy varies between insurers and can vary depending on your businesses needs. At Morgan Insurance Brokers, we insure for all of the above and make sure your assets are properly protected.

Why should I Insure my Fleet with Morgan Insurance Brokers?

When you get fleet insurance with us, we manage all your claims. From the time you lodge the claim and all the way through to the repairs, we fast-track your claims to get your vehicles on the road sooner because we know that every minute your vehicle is not on the road impacts your business.

We know getting your vehicle back on the road is important, so we make sure we prioritise same-day responses to all our fleet clients for speedy resolutions and to minimise business delays and disruptions.

Comprehensive insurance coverage, excess free windscreen claims, and automatic additions (automatic purchasing of new fleet) are some of the key benefits of insuring with us. We know the administration and paper work that goes into small business insurance claims over damaged vehicles or property, so we handle all of this for you.

Depending on the size of your fleet and the Insurer you choose, there is potential for Insurers to include risk management review in your policy. This would mean Insurers have strategies they can implement to make sure your vehicles stay on the road, minimising the regularity and severity of claims. This means less money spent in the long run and reduces your premiums.

Through insuring your fleet with Morgan Insurance, our specialised fleet insurance brokers go above and beyond for our clients to make sure they get the best insurance possible, but they also get the best service in case of claim lodgements.

Morgan Insurance Brokers work to find the best insurance policies for your business, maximising the protection of your assets. Contact us today and we can discuss your insurance needs with a free and easy consultation.

by Mojo Dojo

What is the average cost of income protection insurance in Australia

What is the average cost of income protection insurance in Australia?

What is the average cost of income protection insurance in Australia?

Did you know that nearly 1 in 5 Australians will experience a period of disability or illness that prevents them from working? Without income protection insurance, many would face financial hardship, relying on savings or government support, which often falls short. Income protection insurance can provide a crucial safety net, replacing a portion of your income and ensuring that you can focus on recovery, not finances.

In this article, we will explore the importance of understanding the cost of income protection insurance in Australia. We’ll cover key factors that influence premiums, such as age, occupation, and health status, and how to assess the right level of coverage for your needs. Additionally, we’ll look at the different types of policies available, common pricing structures, and tips for managing premiums while ensuring you’re adequately protected. By the end, you’ll have a clearer understanding of how to make an informed decision about income protection insurance that aligns with your financial goals and lifestyle.

Understanding income protection insurance

What is income protection insurance and what does it cover?

Income protection insurance is a type of policy designed to replace a portion of your income if you become unable to work due to illness, injury, or disability. It typically covers up to 70% of your pre-tax income plus super guarantee and can provide financial support for a set period, often until you’re able to return to work or reach retirement age, depending on the policy terms. The coverage can help with everyday living expenses, such as mortgage payments, bills, and groceries, ensuring that you can maintain your lifestyle during periods when you’re unable to earn an income. Income protection can also cover temporary or long-term disabilities, offering peace of mind during unexpected health challenges.

Understanding the cost of income protection insurance

Understanding the cost of income protection insurance is crucial for individuals in Australia because it helps ensure they are adequately covered without overcommitting financially. While this type of insurance can offer invaluable support during times of illness or injury, it’s important to balance the cost of premiums with the benefits. A well-calculated premium can provide financial peace of mind without straining your budget. Knowing the factors that influence pricing—such as age, occupation, health status, and policy features—can help you choose an insurance policy that meets your specific needs and circumstances. In Australia where unexpected events can disrupt your ability to work, being informed about the costs of income protection insurance can be a key step in securing your financial future.

The importance of income protection insurance

Income protection insurance is particularly important for individuals with dependents or significant financial obligations because it provides a safety net during times when you’re unable to work. For those with family responsibilities, such as children or a partner who relies on your income, losing your ability to earn can cause severe financial strain. This insurance ensures that essential expenses, like mortgage payments, school fees, and daily living costs, are covered, so you can focus on recovery without the added stress of financial instability. It helps safeguard your family’s financial well-being and maintains your lifestyle even during unexpected setbacks.

How Income Protection Insurance Policies work

Indemnity Policies:

How it works: Since October 2021 any new policy offered will be an indemnity contract. Following a claim the insurer pays a benefit based on your income at the time of the claim, which may be lower than what you were earning when you took out the policy.  The policy will cover no more than 70% of income generated just prior to disability.

Factors Influencing the Cost of Income Protection Insurance

Several factors can influence the cost of income protection insurance premiums in Australia. Understanding these can help you tailor your policy to your needs while managing costs effectively.

Age

Premiums typically increase with age, as older individuals are more likely to experience health issues that could impact their ability to work. The younger you are when you take out a policy, the lower your premiums are likely to be.

Gender

On average, women tend to pay higher premiums than men. This is primarily because women are statistically more likely to make claims due to pregnancy-related conditions and are also often at higher risk of long-term illnesses such as autoimmune diseases. However, the gender gap is narrowing as more insurers move toward gender-neutral pricing.

Occupation

Risk of Occupation

Your job type plays a significant role in determining your premiums. Occupations with higher risk factors (e.g., construction workers, miners, or emergency services personnel) usually attract higher premiums because of the greater likelihood of injury or illness that could prevent you from working.

Risk Classification

Insurers classify occupations into different risk categories, ranging from low-risk office jobs (e.g., desk-based roles) to high-risk occupations (e.g., manual labor or hazardous work environments). The higher the risk associated with your job, the more you can expect to pay for coverage.

Health

Your current health status is one of the most important factors in determining premium costs. Insurers may require you to complete a medical assessment or disclose any pre-existing conditions, such as chronic illnesses or past surgeries. Individuals with ongoing health issues may face higher premiums or exclusions in their policies.

Lifestyle

Lifestyle choices, such as smoking, drinking, or engaging in risky activities like extreme sports, can also affect your premiums. Smokers, for example, usually pay significantly higher premiums than non-smokers because of the increased health risks. Maintaining a healthy weight, regular exercise, and avoiding high-risk behaviors can help keep your premiums lower.

 Benefit Period

The longer the benefit period, the higher the premiums. If you choose a longer period to receive payouts (e.g., until retirement age), your premiums will be higher due to the insurer’s increased financial exposure.

Waiting Period

The waiting period refers to the amount of time you must wait after becoming unable to work before your benefits start. A shorter waiting period means higher premiums because the insurer will begin paying out sooner. Opting for a longer waiting period (such as 60 or 90 days) can reduce your premiums, but it also means you’ll need to have savings or other financial resources to cover your expenses in the meantime.

Level of Coverage

The amount of coverage you choose—whether it’s a percentage of your income (typically 70%) and/or additional benefits—will also influence costs. Higher levels of coverage or additional features (like rehabilitation support or partial disability benefits) will result in higher premiums. Conversely, selecting lower coverage or fewer add-ons can reduce your premium.

By understanding how these factors influence the cost of income protection insurance, you can make informed decisions about your coverage. Tailoring your policy to your personal circumstances—such as choosing a reasonable benefit period or making lifestyle adjustments—can help you balance premium affordability with comprehensive protection.

Average Costs of Income Protection Insurance in Australia

The cost of income protection insurance can vary widely based on multiple factors, including your age, occupation, health, and the level of coverage you select. Below is an overview of typical costs and a breakdown of how different factors influence premiums.

General Range

On average, income protection insurance premiums in Australia range from **$30 to $100 per month** for basic coverage with a stepped premium. However, premiums can rise depending on the level of coverage, age, health, and occupation.

Age-Based Analysis

Under 30 years old

Premiums for young, healthy individuals tend to be on the lower end of the scale. You might expect to pay between **$30 and $50 per month** for basic coverage under stepped premium.

30 to 39 years old

As you age, premiums will naturally rise. For this age group, premiums typically range from **$50 to $80 per month** depending on the level of coverage and other factors under stepped premium.

40 to 49 years old

At this stage, premiums rise due to an increased likelihood of health issues and potential claims. Expect to pay between **$70 and $120 per month** for basic coverage, though this can go higher depending on your specific circumstances under stepped premium.

50+ years old

Premiums significantly increase for individuals over 50 due to the higher risk of injury or illness. For someone in this age group, premiums can range from **$120 to $200 or more per month**. Entry age restriction if over 60.

Occupation-Based Analysis

Low-Risk Occupations (e.g., office workers, teachers, IT professionals that are not purely office based):

Individuals in lower-risk jobs can expect lower premiums, typically around **$40 to $70 per month** for basic coverage under stepped premium. However, this can increase depending on other factors such as health, age, and policy features.

 Moderate-Risk Occupations (e.g., retail workers, salespeople, administrators):

People in moderate-risk jobs may pay premiums between **$60 to $120 per month**. These professions may involve some physical activity or higher stress, which slightly increases the risk of illness or injury.

High-Risk Occupations (e.g., construction workers, miners, first responders, pilots):

High-risk jobs attract higher premiums due to the increased likelihood of injury. Individuals in these roles can expect premiums ranging from **$100 to $250 or more per month**, depending on factors such as age and level of coverage under stepped premium. The riskier the occupation, the higher the premium, especially if the policy includes features like a shorter waiting period or higher benefit amounts.

Comparing Costs Across Providers

When shopping for income protection insurance in Australia, it’s important to compare not just the costs, but also the quality of coverage and the value offered by different providers. The total disability requirement during the waiting period a is a major component in determining the optimal policy.

Cost Comparison

While costs vary based on individual circumstances (such as age, occupation, and coverage), here’s a general comparison of premiums from major insurers for a 35-year-old office worker, with a 30-day waiting period and a 2-year benefit period:

– **AIA Australia**: Approx. **$70  (stepped) to $120 (level) per month**

– **MLC Life Insurance**: Approx. **$75 (stepped) to $130 (level) per month**

– **TAL**: Approx. **$80 (stepped) to $125 (level) per month**

– **Zurich Australia**: Approx. **$75 (stepped) to $120 (level) per month**

These costs are based on general pricing for standard policies. As you move into higher-risk occupations or older age brackets, the premiums can increase significantly across all providers.

Value for Money

While the cost of premiums is an important factor in choosing an income protection insurance policy, value for money involves a broader evaluation. Here are some key aspects to consider when assessing value:

Claims Process

A smooth, quick claims process is crucial. Even if a policy is affordable, poor claims service can result in unnecessary stress when you need it most.

Policy Flexibility

A good income protection policy should be flexible enough to meet your changing circumstances. In most cases an increase to cover or a reduction in the benefit period will require additional underwriting and a personal statement to be completed by the life insured.

Customer Service

Strong customer service can make a big difference in your overall experience. Some insurers offer online tools and dedicated agents to help with policy management, while others may have more limited support.

Additional Benefits

Some providers offer additional services or perks that can enhance the value of their policies. These extras can significantly improve the overall value, even if the premium is slightly higher.

Policy Features

Some insurers offer flexible benefit periods and optional riders like partial disability cover or ongoing rehabilitation support. Features like these can provide long-term financial stability, even if the initial premium is higher.

By carefully comparing costs and assessing the overall value of the policies, you can choose an income protection insurance provider that meets your needs while ensuring peace of mind and financial security in case of illness or injury.

Ways to Lower the Cost of Income Protection Insurance

While income protection insurance is a crucial safety net, it can sometimes feel expensive. However, there are several strategies you can use to reduce the cost of premiums while still ensuring adequate coverage. Here are some key ways to lower your premiums:

Healthy Lifestyle

Insurance providers typically assess the risk of insuring you based on factors such as your health, lifestyle, and medical history. Maintaining a healthy lifestyle can significantly reduce your premiums. For example, if you’re a non-smoker, engage in regular exercise, and have a healthy weight, insurers view you as a lower risk for illness or injury, which can lead to more affordable premiums.

  Practical Tips:

  •  Quit smoking if you’re a smoker. Smokers pay higher premiums than non-smokers
  •  Stay active, eat a balanced diet, and manage stress to reduce the risk of chronic conditions like diabetes, hypertension, or heart disease.
  •  Regular health check-ups can also help identify and address potential health issues early, improving your health status and lowering your premiums.

Policy Adjustments

Longer Waiting Period

One of the most effective ways to reduce your premium is by choosing a longer waiting period before benefits kick in. The longer the waiting period (the time between becoming unable to work and when you start receiving your benefits), the lower your premiums will be. If you have sufficient savings or other resources to tide you over, opting for a 60 or 90 day waiting period instead of 30 days can make a significant difference.

 Shorter Benefit Period

If you don’t need long-term coverage, consider selecting a policy with a shorter benefit period (e.g., 2 or 5 years instead of until retirement age). This will lower your premiums, though you’ll need to ensure that the duration still provides adequate support for your financial needs.

 Reduce the Coverage Amount

Another way to save is by lowering the percentage of your income covered by the policy. For example, reducing coverage from 70% to 65% may lower premiums, but it also means you’ll have to manage with a smaller payout in case of illness or injury. Make sure the amount you choose still aligns with your financial obligations.

Shopping Around

Compare Quotes

Insurance premiums can vary significantly between providers, so it’s essential to shop around and compare quotes. Use comparison websites or work with an insurance broker to help you identify the most affordable options for your needs. Factors such as the level of coverage, waiting period, and additional benefits can all affect pricing.

 Look for Discounts

Some insurers offer discounts for bundling multiple insurance products (e.g., life insurance, trauma insurance) or for paying premiums annually instead of monthly. Don’t hesitate to ask providers about available discounts or promotional offers.

 Review Annually

Your needs and circumstances may change over time, so it’s wise to review your income protection policy every few years. You may find that your premiums increase due to inflation or other factors, and there may be more competitive offers available as your situation evolves.

By implementing these strategies, you can reduce the cost of your income protection insurance while still ensuring that you’re adequately covered in case of illness or injury.

Final Thoughts

Income protection insurance is not just about paying premiums—it’s about ensuring that you’re financially secure if life takes an unexpected turn. While the cost of premiums can vary depending on several factors, it’s important to focus on finding the right balance between affordability and adequate coverage.

If you’re unsure about the best policy for your situation, it’s wise to seek professional advice. Morgan Insurance Advisors can help you navigate the options and find a policy that suits your needs and can allow you to quickly compare premiums and benefits from different providers to ensure you get the best deal. Take action today to safeguard your financial future with the right income protection insurance policy.

Helpful Links

– [MoneySmart – Income Protection Insurance](https://moneysmart.gov.au) – Australian Government website with information on insurance options and consumer rights.

– [Major Insurance Providers: AIA, TAL, MLC Life, Zurich](https://www.aia.com.au), [TAL Insurance](https://www.tal.com.au), [MLC Life Insurance](https://www.mlclife.com.au), [Zurich Insurance](https://www.zurich.com.au)

FAQ's about income protection insurance

The cost is influenced by your age, gender, occupation, health and lifestyle choices, and the terms of your policy (such as waiting period and benefit period).

Yes, by maintaining a healthy lifestyle, choosing longer waiting periods, or reducing coverage levels, you can lower your premiums.

While premiums can be a financial commitment, the protection it provides during illness or injury can be invaluable. It ensures you can continue meeting your financial obligations while recovering. Yes, income protection insurance is worth it.

Here, we do it all. From sourcing the perfect policy, negotiating the terms, and securing it, you can rest assured that we’ll stay on top of it. 

  • The perfect policy 

We help you choose the policy best suited to your needs. We will conduct a thorough assessment of your operations and risks to ensure you have comprehensive coverage that addresses potential liabilities and protects your crane operations effectively. 

  • No more wait time 

With our same-day responses, we guarantee quick turnaround times to address your inquiries and provide prompt assistance. 

  • Personalized service at every step 

Throughout the life of your policy, you will have one dedicated point of contact who will guide you through any updates, claim processes, or adjustments needed. 

  • Bang for your buck 

Save money on your premiums by letting us optimize your insurance investment while ensuring you receive coverage tailored to effectively protect your business. 

  • Flexibility in payment 

We offer monthly installment options, allowing you to spread the cost of your premiums over manageable monthly payments. 

To make a claim, contact your insurer, provide necessary documentation (such as medical reports), and follow the insurer’s claim process. Ensure your policy is up-to-date and covers the condition you are claiming for.

by lauren

IS TPD INSURANCE WORTH IT

Is TPD insurance worth it?

Imagine waking up tomorrow and not being able to work again. How prepared would you be?
Sure, workers compensation insurance will be able to protect you to an extent if you're an employee and the injury happened at work. What if you're self employed and have no workers compensation to fall back on? That's where the likes of income protection insurance will kick in to ensure your income is supplemented up to 70%.

Then here comes the knight in shining armour, Total and Permanent Disability Insurance (TPD) which pays out a lump sum benefit if you're unable to work again due to a severe illness or injury. So is it worth it? We say yes.

How does TPD Insurance Work?

Total and Permanent Disability (TPD) insurance provides financial protection if you become totally and permanently disabled and can no longer work due to illness or injury.

Here’s how it works:

Definition of TPD:

Insurers define TPD in various ways, but it generally means you are unable to work in your usual occupation or any occupation for which you are suited by education, training, or experience. This could be due to severe injury or illness, such as losing multiple limbs, blindness, or permanent paralysis.

Coverage:

TPD insurance offers a lump sum payment that can be used to cover living expenses, medical and rehabilitation costs, and debts like mortgages or credit cards. This helps ensure financial stability for you and your family during a challenging time.

Types of TPD Insurance:

There are typically two types:

Any Occupation: You are considered totally and permanently disabled if you cannot work in any occupation suited to your education, training, or experience.
Own Occupation: You are considered totally and permanently disabled if you cannot work in your specific occupation. This type is usually more expensive and may not be available through superannuation funds.

Why TPD Insurance is Crucial

TPD insurance is crucial in the event where you're unable to return to work. A lump sum payout right when you're at the most stressed period of your life, when your livelihood, your financial security and your future is treathened is an invaluable safety net to fall back on. It's the security blanket that's going to protect your finances from the burden of not being able to work again. Sure, income protection is great, but you'll still need to come up with the other 30% of your income. What about medical expenses and medications, treatment plans, rehab? Those costs can quickly add up. Ensuring you have enough funds for your health, your mortgage, and your families way of life is exactly the reason why you need TPD in conjunction with your income protection insurance.

Things to consider when obtaining TPD

What if it's not a permanent injury or sickness?

TPD insurance stands for total and permanent disability, meaning that it'll pay out in the event where you're unable to work again if you suffer a debilitating injury or sickness. If you suffer from an injury or illness that puts you out of work for an extended period, but doesn't leave you permanently disabled, a Trauma insurance lump sum payout will likely respond in this event. Trauma insurance pays out a lump sum benefit if you suffer from event such as a severe injury, illness, cancer, heart attack or stroke.

Am I restricted on how I spend my payout?

One of the significant advantages of both TPD and trauma insurance is the flexibility in how you can use the payout. Once you receive the lump sum payment, there are no restrictions on how you spend the funds. This means you have complete control and can allocate the money in a way that best suits your needs and circumstances. Whether you choose to cover medical expenses, pay off your mortgage, make necessary home modifications, or simply ensure your family's financial stability, the decision is entirely yours. This flexibility provides peace of mind, knowing that you can address the most pressing financial concerns without any limitations imposed by the insurance policy.

Is it worth the cost?

The cost of Total and Permanent Disability (TPD) insurance can vary widely based on several factors, including your age, gender, occupation, health status, and the amount of coverage you need. Your occupation is one of the biggest drivers of your insurance premiums. If you're working a white collar, low risk, desk job, the likely hood of workplace incidents are significantly lower than those blue collar workers that are in construction for example that have dangers of pollutants, heavy lifting and physical demands, falling objects, and equipment and vehicle injuries. Those in lower risk industries will naturally pay lower premiums.

The Importance of knowing what you're covered for

The policy conditions, definitions and exclusions are the backbone of any insurance policy.
When it comes to TPD (Total and Permanent Disability) insurance, grasping these terms is vital. They outline what constitutes a total and permanent disability. Since these criteria can differ between insurers, understanding them ensures you know exactly what is required to qualify for a payout. This is how Morgan Insurance helps as your advisor, so you know exactly what you're covered for, and also can guide you through the claims process.

How to obtain TPD insurance

Comparing TPD (Total and Permanent Disability) insurance policies can be complex, but using a professional advisor like Morgan Insurance Advisors can simplify the process and ensure you get the best coverage for your needs. One of the key benefits of working with Morgan
Insurance Advisors is our access to a wide range of insurance providers. This means we can present you with multiple policy options, highlighting the pros and cons of each. This comprehensive comparison ensures you find a policy that offers the best coverage at competitive premiums.

by lauren