Keep your head above water

Insurance premiums are on the rise and insurers agree that mental health claims have played a part in this increase. Experts, however, are warning against cancelling your policies during such challenging times.

Income protection, or salary continuance, insurance has risen the most dramatically. Michael Nowak, a Brisbane-based adviser and vice-president of the Association of Financial Advisers, says over the past couple of years a conservative estimate is that income protection premiums have risen on average 10%-20% a year, with some insurers increasing their prices by 50%.

“The increases are at a level they’ve never been before and there are a lot of concerns from consumers. You do get worried about their confidence in life insurance,” he says.

“In terms of the influence of Covid-19, the impact has been that disposable spending is affected and this has led