An income protection insurance policy is designed to provide you with income replacement if an injury or illness impacts your capacity to work. However, income protection claims are successful only if there is sufficient evidence of injury or illness causing disablement.

Even if it’s a short period of time, many people suffer the long-term consequences of being out of work without coverage. There is the unfortunate possibility of having to sell the family home, delay retirement plans, send children to a different school and take out high-interest loans to pay off urgent bills – not to mention bankruptcy. This can result in a lengthy return to stability for you and your loved ones.

However, in addition to helping ensure you and your family will be able to cope when the unexpected occurs, Aspect Underwriting’s income protection insurance offers benefits of up to 85% of your income, which will aide in a swift and hassle-free return to health by being financially secure. 

The thing to keep in mind when considering income protection insurance is that it can make more sense for some people based on their specific circumstances. Income protection may be a suitable product if you fall into any of the following categories:

  • Full-time, part-time or casual employees
  • You are self-employed or own a small business and you can’t rely on sick leave or holidays.
  • There are people who depend on your income.
  • You have debts you need to repay, such as a mortgage. 

You can calculate the income you would receive month-to-month by multiplying your personal annual income by 85% and then dividing that total by 12 months. People can get up to 85% of their income with Aspect (other insurers only offer up to 75%).

Your income protection premium may decrease or increase depending on a variety of policy options and personal details. A longer waiting period and shorter benefit period will make your insurance policy more affordable. You just need to ensure that it is still appropriate to your specific needs.

To calculate your income protection insurance, insurers also consider a wide variety of factors in assessing your risk level. Some of these factors include:

Age: As a person gets older, the likelihood of falling ill increases. As a result, insurance premiums rise as a person ages. In contrast, purchasing a policy when you’re young will result in lower monthly premiums because the risk of a claim is lower.

Health: In the event of having a medical history that increases your risk of filing a claim, the insurer may add a loading to your policy, resulting in a higher premium.

Occupation: Obviously, some jobs come with greater risks than others. Your premiums will depend on the level of risk involved in your occupation and the actual duties you perform. For example, If you’re a firefighter, your premiums may increase because insurers see firefighting as a high-risk occupation.

Waiting Period: The higher the premium, the shorter the waiting period.

Benefit Amount: The longer the duration of your benefit, the more you will be charged.

Smoking Status: Smokers tend to be at higher risk of developing certain diseases, and therefore pay higher premiums. You will pay more for income protection if you smoke. If you give up, you can change your status to that of a non-smoker.

Most people find income protection insurance very useful, but it can be a little confusing without professional guidance. At Aspect Underwriting, one of our friendly and professional team members are ready to take you through the registration process and help you find a tailored policy best suited to your circumstances. 

Solutions provided by Aspect Underwriting include accident and health insurance. The professionals at Aspect Underwriting have over 40 years of combined experience in accident and health insurance and, as a result, can provide you with industry leading guidance to ensure you are comprehensively covered.


Mike Wallis

Mike has over 25 years experience, having spent his first seven years working as a Broker at Jardine Lloyd Thomson in Melbourne and in 2002 was transferred to JLT’s Accident and Health Department in London. For four years (2002 – 2005) Mike was a specialist A&H Lloyd’s Broker and during this time developed excellent relationships with the Lloyd’s A&H underwriting fraternity. In 2006 he returned to Australia in a senior broking position with overall responsibility for Placement Strategy, including the implementation of underwriting facilities and the various authorities granted by Lloyd’s. Mike was the underwriter at two specialist Underwriting Agencies prior to founding Aspect Underwriting in 2016.