There are a number of things you need to take into account when choosing the best income protection insurance policy:
Waiting periods. Generally, income protection insurance policies will include a waiting period of anywhere between 14 days, up to 2 years in some cases. You’ll usually find that the shorter the waiting period, the more expensive the policy, and vice versa. So when choosing your policy, be sure to factor in whether you have sick leave, annual leave, and savings or emergency funds available.
Benefit periods. The benefit period in your income protection policy is the period of time during which your payments last. Most income protection policies offer periods of between 2 and 5 years, or up to the age of 65. Typically, the longer your benefits last the more expensive your policy will be—but it also means you’re covered for longer.
Premiums. You will usually find you can pay your income protection insurance in one of two ways. Under a stepped premium your policy is recalculated every time it renews, and will usually increase as you get older. A level premium charges a flat rate at the outset, which is usually higher than a stepped premium, but isn’t likely to increase as much as your policy progresses.