I was wondering whether Income Protection insurance premiums can go up with age? I can afford the premiums now but I’m worried it might get too expensive if the monthly cost rises as I get older.
This is a very important question and one that is often overlooked by people seeking cover. It is vital that the policy is affordable not only today but in the long-run also, especially as the risk of illness or injury rises with age.
When looking for a traditional (Long-Term) Income Protection plan covering your earnings against the risk of accident or sickness up until retirement there are a number of options as to how the premiums can be structured:
Where possible we usually recommend guaranteed premiums so the policy is affordable long-term and the insurer doesn’t have the right to make changes. However, for manual workers it may be necessary to have age bounded premiums to gain own occupation cover.
Over the life of the policy it is sometimes the case for white-collar workers that the total cost of age-bounded premiums can work out lower. Drewberry uses a calculator to establish the total cost of each option when recommending the most suitable choice to our clients.
I had the pleasure of dealing with Jake Mills in organising my insurance. Jake was fantastic to deal with — his patience and understanding really helped.