Income protection insurance costs vary depending on several factors. For starters, your profession surely figures when insurers evaluate your application. Some jobs present more risk than others and insurance providers definitely take note of this fact. Occupations that are low risk, such as those confined in an office, tend to get lower premiums. High-risk professions such as skilled or unskilled manual labor, on the other hand, tend to be subject to higher premiums.
Another factor that affects income protection insurance costs is the actual income itself. Based on the policy the buyer opted for, about 1% to 3% of his annual income may go to the insurance premium. Other factors include the deferred period opted for, age, and gender. As a rule, longer deferred periods, sometimes even as long as a year, require lower premium payments. Shorter deferred periods, such as one month, entail higher premiums. Age, in the meantime, matters in such a way that older people are considered higher risk applicants so they usually have to pay more than younger ones. The same principle goes for gender. Women are considered higher risk because of domestic variables, so they are usually subjected to higher premiums.
At the end of the day, it’s really all about risks. People who are more likely to collect are required to pay more.