The first way of reducing the premiums you pay for your income protection policy is to have a longer waiting period between making a claim following an accident/injury/illness and receiving your first benefit payment. You can often stipulate how long you want the waiting period to be and the length you choose will depend to a large extent on your ability to support yourself financially without any form of income.
If you have a prosperous year on your farm in the 12 months before you make a claim then it might be that you can wait upwards of 6 months before receiving an income. Most people wait between two weeks and a few months but the longer you can leave it the lower your insurance premium will be.
Period for receiving your monthly payments
The second way to lower your premiums is to choose a shorter time period for receiving your monthly payments from your policy. The vast majority of income protection policies pay out for 2 to 5 years while some pay out until you reach retirement age.
As an employee or self employed you’re going to have to be in good health to return to work but returning to early could be detrimental. This means you need to choose a time frame that will get you back on your feet without pushing your premiums sky high.