The waiting period and benefit period you select are two of the most significant factors affecting your Income Protection premium, potentially varying costs by 200-300% or more. Longer waiting periods dramatically reduce premiums: choosing a 90-day waiting period instead of 14 days can reduce your premium by 40-60%, as the insurer avoids paying for short-term claims, which are the most common. For example, a policy might cost $150/month with a 14-day wait, but only $75/month with a 90-day wait. The benefit period has an even larger impact: a 2-year benefit period might cost $80/month, while the same coverage with a benefit period to age 65 might cost $180/month or more - over double the premium. This is because the insurer's exposure to long-term claims is far greater with extended benefit periods. To optimize your coverage affordability: select the longest waiting period you can financially manage based on your savings and sick leave entitlements (most advisers recommend at least 30-60 days if you have emergency savings), and choose the longest benefit period you can afford, as this protects against catastrophic long-term disability. Many people choose 2-year benefit periods to save money, but this leaves them vulnerable if they suffer a serious condition like cancer or severe injury requiring years of recovery. A cost-effective compromise is a 60 or 90-day waiting period with a benefit period to age 65, providing comprehensive protection at a more manageable premium cost. Review these selections every few years as your financial situation changes.