Insurer defends online income protection
Graeme Lindsay, who owns insurance analyst Strategy Financial Services, said income protection is a "minefield" due to a number of issues that consumers won't be aware of if they don't use the services of an adviser.
The most complex, he said, is the issue of offsets against whatever income the client is still earning at the time of the claim.
"What this means is, how much is the insurer actually going to pay you despite what it says on the policy? The position of a comma can make a world of difference to what you actually get paid.
"Some insurers will say, ok, you're earning $100,000 a year and you're insured for $50,000 a year but you've still got ongoing income of $30,000 a year so we'll give you $20,000. However, others will say, we'll give you three quarters of your loss up to a maximum, which would mean you would get the full $50,000," he explained.
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