BDH Leaders work with a variety of experts to give our clients holistic financial advice.
In this article, we hear from Andrew Newton from MBS Insurance. He’s our recommended insurance advisor who assists clients with a range of insurance requirements. He also works with us to ensure premiums are structured in a tax effective way and in line with your personal situation.
Currently, income protection insurance policies typically provide up to 75% of your income if illness or disability prevents you from working. They usually include a qualifying period before benefits will be paid which can be recommended based on your personal situation. In addition, benefits are often paid for a defined period.
In the last few years, insurers have seen a significant increase in the number of income protection claims made. This has led to premium increases due to industry wide losses. Even so, at current levels, the rate of claims is unsustainable for insurance companies. Ultimately, this is bad news for everyone.
Concerned about this worrying trend, APRA (Australian Prudential Regulation Authority) has stepped in to investigate the surge in premiums and has called on all Australian insurance providers to offer more sustainable and fairly priced policies.
As a result of APRA’s intervention, insurance providers are reviewing their range of income protection policies. After this review, it’s expected new policies will no longer provide the supplementary benefits coverage currently available. The core coverage of Income Protection will remain, but generous benefits and policy perks will be simplified in order to keep the product pricing more sustainable for insurers and policy holders.
If income protection is something you have been considering OR, if you haven’t reviewed your current income protection policy for a while, you should consider reviewing your cover now! Even with the proposed changes, MBS Insurance may be able to find you a more competitively priced policy, despite the proposed changes.
Andrew Newton from MBS Insurance is a trusted insurance advisor for many of our clients and is available to chat at any time. He is generous with his knowledge and his advice is free of charge to you. There’s no obligation but if you choose to take out insurance with Andrew, you can feel confident his recommendations will be based on careful consideration of your personal situation and a thorough understanding of your protection concerns.
To speak to Andrew about your income protection or other life insurance requirements, call him on 0451 982 269 or email Andrew.Newton@mbsinsurance.com.au
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