What should I consider when comparing Income Protection policies from different insurers?

Comparing Income Protection policies requires looking well beyond just the monthly premium, as significant variations exist in coverage quality, definitions, and features. Key factors to compare include: the disability definition (own occupation vs any occupation, and for how long), mental health limitations (2 years is common, but some policies offer more or less), waiting period options and whether they're consecutive or aggregate, benefit period options and their cost implications, and whether the policy is agreed value or indemnity. Examine maximum benefit amounts - some insurers cap monthly benefits at $15,000-$20,000 regardless of income. Review increasing claim limits, rehabilitation benefits, and partial disability provisions. Check exclusions carefully, particularly for specific conditions, activities, or occupations. Consider premium structures (stepped vs level), indexation arrangements (automatic CPI increases), and the insurer's history of premium increases. Investigate the insurer's claims-paying reputation - some insurers are known for challenging claims more aggressively than others. Check policy ownership rights and guarantees - is the policy guaranteed renewable? Can the insurer change terms? Look for additional benefits like crisis payment (immediate lump sum before waiting period ends), accommodation benefits (travel for treatment), or specific injury benefits. Consider whether you need business expenses cover or additional options. Financial strength and stability of the insurer matters for long-term claims. The cheapest policy rarely offers the best value - a policy that costs 20% less but has inferior definitions might deny a claim that a comprehensive policy would pay. Professional advice from an insurance specialist who compares multiple insurers can be invaluable, as policy wordings are complex and subtle differences can have major implications when claiming.