As with any form of insurance, the cost of your TPD policy premiums will depend on the level of risk. This assessment will vary between providers.
Some general indicators of risk are:
This is one of the most important factors to affect your premiums. TPD insurance premiums are generally stepped, which means as you get older, your premiums will increase each year.
Women are typically able to qualify for lower premiums because their life expectancy ratio is generally higher than men.
Your occupation and its perceived level of risk will also determine the level of premium payable. White collar occupations that require no manual work will pay cheaper premiums. Whereas, blue collar occupations that involves manual work and high risk duties.
- Family medical history
If there is a genetic or physical ailment in your family history, this may potentially increase the risk and your premiums.
- Current health indicators
There are key indicators which an insurer will use to gain a picture of your health, lifestyle and level of risk. Current blood pressure, allergies, cholesterol levels and red blood cells may affect your premium.
- Lifestyle choices
If you smoke, drink or participate in high risk activities on a regular basis, these factors may also taken into account when calculating your level of risk.
Since there are many variables that can affect your cover and the cost of your premiums, it is essential for you to gather and compare total and permanent disability insurance quotes online before you buy. However, keep in mind that the quotes you receive can change once your application is assessed in detail by the insurer’s underwriter. Therefore, if you have a certain pre-existing medical condition, or are working in a high-risk occupation, it can be beneficial to search for an insurer who specialises in these fields, as they often have risk minimisation strategies in place to offer more affordable premiums than a mainstream insurer.