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ADVERTORIAL
Is the cost of your income protection
insurance breaking the bank?
In this article, Experien offers an insider’s view of the price increases that
are generally flowing through to some people who have income protection
at some of the insurers that are active in this market.
Income Protection insurance provides
valuable protection against temporary
and permanent illness and injury. The
industry pays out hundreds of millions of
dollars each year to people who claim
on these policies. Unfortunately claims at
some insurers for some conditions have
risen sharply over the past year which
has meant some insurers have been
losing money on their products. Whilst
some insurers are holding steady, many
have needed to raise their premium rates
up to around 10%.
What are the insurers doing?
Each insurer is adopting a different
approach. Some are not increasing
premiums. Others are increasing some
products by a small amount and others
by a larger amount. Each person is
affected differently (if at all).
Stepped premium and CPI
premium increases
If you have what is termed a “stepped”
premium policy, then your premiums
generally increase each year regardless,
as your risk of claiming generally rises
each year. Your premium may also
increase by an inflationary amount as
your cover increases by a similar
amount each year. The increases
referred to in this article would be
additional to any such increases.
When do premium increases
take effect?
We are made aware early of a
price increase (if any) planned
by an insurer. These only take
place on a policy anniversary.
Our approach is to review this increase
and then analyse what it means to each
client. We then consider if affected clients
could be better off with an alternative
insurer or if there are other options
to consider to mitigate the premium
increase - such as increasing the waiting
period associated with any claim.
In some cases, no changes may be
suggested or possible. We present any
recommendations to you shortly before
your next policy anniversary – which is
the date that any price increase would
take effect.
So what should you do about
your insurance?
If you already have insurance in place,
we can provide a complimentary review
to ensure you have the best cover.
We generally have access to the
cheapest personal insurance rates from
the major insurers and it is unlikely that
any other adviser would be able to
obtain better rates for you. Unlike some
other advisers, we have access to all
the insurers in the industry.
Whilst it is impossible to predict with
certainty if future insurance premiums
will rise or fall, we take great care to
work with insurers that we believe are
financially secure and have long term
stability with a great claims payment
history and service.
Contact Tracey Kloner or Alex Kambos today for an obligation free consultation and review.
Tracey Kloner
Direct: 02 9293 6671
Mobile: 0417 258 288
tracey.kloner@experien.com.au
Alex Kambos
Direct: 02 9293 2118
Mobile: 0406 995 432
alex.kambos@experien.com.au
Disclaimer: This information is of a general nature only and has been prepared without taking into account your particular financial needs, circumstances and objectives. While every
effort has been made to ensure the accuracy of the information, it is not guaranteed. You should obtain a copy of the product disclosure statement and also obtain independent
professional advice before acting on the information contained in this publication. Life Insurance services are provided by Experien Insurance Services Pty Ltd (ABN 99 128678 937).
Experien Insurance Services Pty Ltd ABN 99 128 678 937 is a Corporate Authorised Representative (No. 320626) of ClearView Financial Advice Pty Limited ABN 89 133 593 012 AFS
Licence No. 331367.
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