Managing your premiums

Payment frequency

If you currently pay your premiums monthly, you may be eligible for a discount by changing to half-yearly or annual payments.

Some things you may want to think about:

• How you prefer to manage your finances. Can you afford to pay a larger amount annually or half-yearly in order to receive a discounted rate?
• Do smaller monthly payments (rather than half-yearly or annual) make it easier for you to manage your finances?
• Would a discounted premium rate paid annually work better for you?

Changing from monthly or quarterly payments to half-yearly or annual could reduce your premiums by up to 8%*.

The amount you're covered for

The amount you’re covered for (also known as benefit amount) affects how much you pay in premiums. Given your individual circumstances, if you no longer require your current level of cover, you may wish to reduce it and therefore reduce your premiums.

Some things you may want to think about:

• Have things in your life changed since you started your policy? For example, if you’re no longer paying school fees or a big mortgage, your financial needs may have changed.
• If you wish to increase your benefit amount in the future it will be subject to underwriting and our approval.
• Consider whether this is suitable based on your individual circumstances and speak to a financial adviser.

As an example, reducing your benefit amount by 10% could also reduce your premiums by around up to 10%*.

Health and medical loadings (if applicable)

When you started your policy, your health and smoker status may have led to certain loadings being applied to your cover, and higher premiums.

Some things you may want to think about:

• If your policy was issued with an additional medical loading, has your health improved since the start of your policy? You can ask us to review any medical loadings currently included on your policy. You will need to submit an application and complete our underwriting process for us to assess whether we are able to reduce any loadings.
• Have you quit smoking since taking out your policy and not smoked at all in the past 12 months? Let us know: that may have an impact on your premiums too.

If we approve a change to a non-smoking status it could reduce your premiums by up to 20%*.

Apply to update your current occupation

High risk occupations (for example, operating heavy machinery or working at a construction site) often mean higher Total and Permanent Disablement (TPD) and Income Protection (IP) premiums.

Some things you may want to think about:

• Has your occupation changed to a significantly lower risk role? For example, have you changed from a blue collar or manual occupation to a white collar or office role? You will need to submit an application and complete our underwriting process for us to assess whether your occupation change could reduce your premiums*.
• Speak to your adviser about whether this is relevant and appropriate for you.

Adjust your Income Protection

There are a few ways you may be able to adjust your Income Protection policy if affordability is a concern.

Reducing your benefit period

Your benefit period refers to how long you’ll receive payments while unable to work due to injury or illness.

Some things you may want to think about:

• It’s important to note that if you do reduce your benefit period, you will not be able to increase your benefit period again in future, i.e. you will not be able to reverse this change.
• Consider whether this is suitable based on your individual circumstances and speak to a financial adviser.

Changing your benefit period from to age 65 to 5 years could reduce your premiums by up to 45%*.

Increasing your waiting period

Your waiting period refers to the period of time after you experience an injury or illness before we’ll pay a claim.

Some things you may want to think about:

• It’s important to note that if you increase your waiting period, and later decide that you want to reduce your waiting period again, this will be subject to underwriting and our acceptance.
• Consider whether this is suitable based on your individual circumstances and speak to a financial adviser.

Increasing your waiting period from 30 to 60 days could reduce your premiums by up to 6%, or up to 35% if you increase it from 30 to 90 days*.

Switching from Agreed Value to Indemnity cover

Agreed Value means the benefit amount is set at the start of your policy, while the benefit amount for Indemnity policies are based on your income at the time of claim and typically have lower premiums.

Some things you may want to think about:

• New Agreed Value benefits or policies are no longer available.
• It’s important to note that if you change from Agreed Value to Indemnity cover, you will not be able to change back to Agreed Value.
• Consider whether this is suitable based on your individual circumstances and speak with a financial adviser.

Switching from Agreed Value to Indemnity could reduce your premiums by up to 15%*.

Consider downgrading from Income Protection Premier to Income Protection Standard (available for Accelerated Protection products issued prior to 24 September 2021 only)

Consider whether the benefits and options available under Income Protection Premier are still suitable for your needs, or whether the less comprehensive Income Protection Standard product is appropriate for you.

Some things you may want to think about:

• If you change from Income Protection Premier to Income Protection Standard, you will not be able to change back to Income Protection Premier in the future.
• Speak to your adviser about what options are available on your IP policy and whether these options are suitable for you in light of your individual circumstances.

Downgrading from Income Protection Premier could reduce your premiums by up to 10%*.

Adjust your TPD insurance definition (from Own Occupation to Any Occupation)

Total and Permanent Disability insurance (TPD) typically includes either:

• An ‘Any Occupation’ definition, which generally means you can make a claim if you’re permanently disabled and unable to work in any occupation that suits your education and training; or
• An ‘Own Occupation’ definition, which generally means you can make a claim if you’re permanently disabled and unable to work in your own usual occupation, which usually has higher premium rates.

Some things you may want to think about:

• It’s important to note that if you change from Own to Any Occupation, you may not be able to change back to Own Occupation in the future.
• Speak to your adviser about which TPD definition currently applies to your policy and whether that’s still the best fit for you and your family.

Changing from Own to an Any Occupation definition could reduce your premiums by up to 38%*.