INTHEBLACK June 2025 - Magazine - Page 43
SPECIAL ADVERTISING FEATURE
HOW FLEXIBLE INCOME PROTECTION IS
MAKING COVERAGE MORE ACCESSIBLE
Is flexible income protection the answer to securing your financial future amid rising costs and economic
uncertainty? Here are expert tips on choosing the right cover to fit your needs and budget.
Imagine waking up one day unable to work
for months due to an unexpected injury or illness.
Your income stops, but the bills don’t — rent
or mortgage payments, groceries and school fees
keep coming.
Enter: income protection. It can act as a financial
safety net, with monthly payments when you’re
unable to work.
Many Australians either lack income protection
or have outdated coverage, leaving them
financially vulnerable should the unexpected occur.
According to KPMG Australia’s Life Insurance
Insights 2023 report, rising inflation, economic
pressure and high claims payouts have all
contributed to higher premiums.
Viviane Murphy, product and proposition lead at
NobleOak, says insurers need to adapt and
modernise income protection to offer flexible
coverage that makes it accessible to people
at every age and stage of life.
She points to McKinsey’s Global Insurance
Report 2025 which identifies key factors driving
the demand for adaptable policies, including
an aging population, the rise of Gen X,
the growing “silver” generation of wealth,
shifting family structures, and the increase
in dual-income and non-traditional households.
Here’s what to look for when considering
income protection that fits your needs and budget.
1. INSURANCE COVER TAILORED BY YOU
Insurance isn’t one-size-fits-all. An appropriate
underwriting process ensures you get coverage to
suit your needs, fair pricing and more reliable claims.
“Without full underwriting or complete medical
disclosure, you could end up paying higher
premiums for a fixed policy that doesn’t truly fit,”
Murphy says.
Flexibility matters. Look for policies that let
you adjust coverage as life evolves, whether
it be through changing jobs, promotion,
getting married, having a baby or buying a house.
2. ADJUSTABLE WAITING PERIODS
Waiting periods — the time between when you
stop working and when your benefits start — can
affect your premiums. Standard options are 30
or 90 days, but some insurers offer 60-day and
even two-year options.
“Longer waiting periods generally mean lower
premiums, making them a good choice if you have
savings or other coverage such as insurance inside
superannuation. A short waiting period might feel
reassuring, but can be more expensive,”
says Murphy.
3. SIMPLER, TRANSPARENT POLICIES
Murphy notes that recent regulatory changes to
income protection, aimed at improving
sustainability, may have made policies more
complex for many customers to understand.
“When choosing income protection, clear
and consistent language and transparent coverage
is key.”
“Look for policies with clear, consistent definitions
of coverage that remain consistent throughout the
claim period, as this removes ambiguity and ensures
you know exactly what you’re covered for should
you need to claim,” she says.
Murphy also recommends understanding the
premium structure and how it changes over time
alongside your budget and financial needs.
“Look for premium structures that are fair,
transparent and easy to understand,” she says.
4. INDIVIDUALISED REHABILITATION BENEFITS
Bouncing back from an illness or injury often
requires more than just medical care. It may also
require therapy, vocational training or career
counselling to help you regain your independence.
Traditional income protection cover offers
a single, fixed rehabilitation benefit, which can
be limiting.
“A broader range of rehabilitation benefits
allows people to choose a recovery path that suits
them — whether through their own program,
vocational retraining or a customised approach,”
Murphy explains.
5. FLEXIBLE BENEFIT PERIOD OPTIONS
When it comes to income protection, there
are several benefit period options to choose
from — including short-term, one-year, two-year
and five-year plans.
Long-term income-protection policies,
typically lasting until age 65, offer security but
come with higher costs. Murphy suggests
reviewing benefit periods depending on your
life stage and needs.
CPA Australia members are
entitled to lifetime discounts
on life and income protection
insurance from NobleOak.
Get a quote here.
Important information: Please note, cover is available to Australian residents
only. NobleOak Life Limited ABN 85 087 648 708 AFSL No. 247302
(NobleOak Life) issues the products. T&Cs apply. CPA discounts information
on site.
The information contained in this document is of a general nature only
and does not take into consideration your objectives, financial situation
or needs. Before making a decision to purchase or continue with a product
you should read the relevant Product Disclosure Statement (PDS), Target
Market Determination (TMD) and Financial Services Guide (FSG). If you
are considering replacing an existing life insurance policy you should
consider your circumstances, including continuing the existing cover until
the replacement policy is issued and cover confirmed.
Disclaimer: CPA Australia does not endorse the advertised products or services. The products or services being offered are solely those of the advertisers. CPA Australia endeavours to partner with companies offering
access to relevant products and services for members. All costs incurred in marketing specific member benefits programs are borne by the member benefits partners. The information published in this advertisement
is of a general nature only and does not consider your personal objectives, financial situation or particular needs. Before acting on an advertisement, you should consider the appropriateness of the product or service having
regard to your objectives, financial situation and needs. We recommend you obtain independent advice before applying for a product or service from advertisers referred.
intheblack.cpaaustralia.com.au 43
