$2000 Dollars Saved On Personal Insurances -Real Life Example

Posted in Front Page ESTAS BLOGS

Friday July 30, 2010

Income Protection Insurance is a very important Insurance you should have in place, especially if you have a family, mortgage or are self employed. Income Protection Insurance pays you up to 75% of your income in the event that something happens to you, and you are unable to work.

If you were unable to work for a long period of time, how long could you survive without an income, how could you pay your bills, your mortgage, and all your other expenses before your savings ran out? How long would it be before you had to sell your house, and possibly lose everything you have worked so hard for? If you do not have Income Protection Insurance in place, I strongly recommend that you consider taking it out.

For those of you who have Income Protection Insurance, you will know first hand just how  expensive this insurance can be.  But there are some great companies out there that will save you a fortune on these types of Insurances.

Now, back to the $2000 dollar saving. I recently had the opportunity to assist a friend of mine with his Income Protection Insurance. He had Income Protection in place for the past two years that he took out through a Broker, and his latest renewal premium had increased to $2,200 pa.

I thought this was a brilliant opportunity to try out the Cash Back Brokers (as listed in the Directory on our website) and see if I could get him a better deal. There are a number of discount broker companies, but on this occasion we went with iRefund. The way these companies work, is they share the commissions they are paid to them by the Insurance companies with their customers. When commissions range between 100% - 125% of the annual policy premiums (depending on the insurer) and iRefund rebate 50% of this, you can see that it is easy to receive more than 50% of your premium back .

I was more than impressed with the end results. Firstly the policies are all rated out of 100 - his current policy was rated as 80/100. iRefund found a new policy for him that was rated 90 out of 100. On top of this, his current premium was based on an annual income of 69K, as he was self employed his new annual income on his latest tax return was just over 100K, which would have increased his existing policy through his existing broker considerably if he had had it reviewed. And lastly, he took out two new Insurance Policies, life Insurance of $500,000 and trauma Insurance of $500,000.

The total cost for all the new insurances totalled approx $4,200. Now this seems like a lot more, but iRefund shares back the commission they receive, which on these policies worked out to approx $2,200, making the total cost to him for the annual premium after Cash Back of approx $2,000.

Not only did he save himself approx $200 per year compared to his current policy, but the additional benefits he received were - 

• $3,000 Income Insurance premium that is fully tax deductable (as opposed to $2,200 that is tax deductable with previous policy)
• He now has a more comprehensive and better rated policy.
• Covered for annual income of 100K+ as opposed to 69K
• He is now covered with life Insurance of 500K
• He is now covered with Trauma Insurance of 500K

He was more than happy to proceed with these policies, but if he had wanted to, he could have easily halved his premium. He could of done this by not taking out the additional life and trauma Insurance policies, and altering the variables of his Income Protection Policy, such as waiting period, benefit period, and income - as he chose to be covered to age 65 (you can choose from 1 year, 3 year etc, up to age 65), chose just a 30 day waiting period (again, you can choose 14 day, 60 day, even 2 years), and he also chose to be covered for the full amount of his income (you can insure for less than your income - and if you are on a tight budget, some cover is better than none!).

To receive the same Insurance Policies that he received with iRefund, it would have cost him an extra $2,200 going through a non cash back Broker, possibly even more! So that is an amazing saving for him, and of course a fantastic deal for less than he was originally paying.

The only drawback with cash back brokers is that you need to hold the policy for a full year before you receive your Cash Back. This is because the Insurance Providers claw back commission paid to the brokers if the policies are paid out or cancelled within the first year. But as you can see for yourself, it’s worth the wait!

To get more information, or to receive a quote, you can visit one of the Cash Back Brokers via the links below.

Click here to visit iRefund

Click here to visit Your Share

Click here to visit Refund Easy

 

Have you had a great experience with a Cash Back Service? Tell us about it by leaving a comment below. 

Please note:  Blogs are not paid for, or sponsored by the businesses mentioned in them. The blogs are purely to bring you information that might help you to save money.

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