Optimal Income Protection

Income Protection "Optimal"

A low cost option for senior doctors

Optimal Income Protection

Optimal is a revolutionary concept in Income Protection. Many of our Senior Medical clients have taken Optimal cover because it helps them to protect their assets during the latter decades of their careers, at low tax deductible costs.

Optimal categorises claims into three categories:

  • Specified Critical Illness Events such as cancer, heart attack or stroke. A claim under this category can be paid from Day 1 (NO waiting period) to Age 70. 
  • Specified Injuries such as fractures which pay out a specified amount from Day 1 (NO waiting period) when one of these injuries occurs.
  • Other Sickness and Injury – a ‘catch all’ category which pays up to 730 days (in aggregate with claims from Category 2), after a 30 Day Waiting Period.  

Optimal has an element of self-insurance, which you must assess in terms of your personal needs, objectives and circumstances. Please refer to the Product Disclosure Statement.

Frequently Asked Questions

I am in my late 50's and my current Income Protection cover has a Benefit Period to Age 65. What is the benefit of Optimal Income Protection?

Many professionals in your situation have indicated to us that they are sick and tired of outlaying large insurance premiums, and that the Optimal contract, besides significantly reducing their costs (and being tax deductible), provides them with the potential to claim from Day 1 to Age 70 (an additional 5 years relative to most Income Protection contracts that terminate at age 65 years) for those medical conditions which commonly afflict professionals in this age group (Optimal Category 1: cancer, heart attack, stroke etc).

If they suffer a Category 2 or 3 claim, they are paid for up to 2 years. If the disability extends beyond the 2 year benefit period, they would have had the 2 years on claim in which to restructure their practice while still receiving an income from Tower.

What are the financial benefits associated with this cover?

As Optimal is far less costly than normal Income Protection, you are able to allocate the saved premiums for investing and building up assets for the future. A Category 1 claim, which pays you to age 70, will provide you with an income stream so that you do not have to deplete your hard earned assets by living off them. These assets can then continue to grow for you and your family for future years. Category 2 and 3 claims only pay for 2 years.

My Income Protection premiums are very high. How can Optimal help?

Optimal will help you save on costs, as their premiums are generally 60% less costly than conventional Income Protection contracts.

What’s the benefit of having cover in the final years of my career?

Should you have a Category 1 claim (heart attack, stroke, cancer etc) there is the potential to receive an income to Age 70 so that you do not have to utilise and/or deplete your hard earned assets, which can then continue to grow for you and your family for future years. At this stage of your life, it is a financial planning and financial conservation strategy for a low and tax deductible cost.

Should you have a Category 2 or 3 claim, the 2 year benefit period gives you time to restructure your practice while still receiving an income from Tower.

Why is Optimal Income Protection better than a 2 year benefit period?

For approximately the same costs, you are getting the potential for a payout to Age 70, as compared to a 2 year benefit period.

Would you recommend Optimal for young doctors?

Only as a temporary measure if there is a cost issue, until they have enough funds to change to comprehensive cover.

Rather have low cost tax deductible Income Protection cover with an element of self insurance, than no cover at all and be exposed in the event of a sickness or accident.

Do many of your professional clients have Optimal?

Yes, many of our clients have Optimal. One of our objectives is to ensure clients are protected under their Income Protection cover to Age 70. Sometimes this is achieved using Optimal, and sometimes it is achieved with Comprehensive contracts.

To discuss Optimal Income Protection or to get a quote, contact us.

Need more information?


“I wanted to reduce the cost of my Income Protection, but at the same time have a contract that was relevant to my age and needs, as a senior professional. That is why Optimal is ideal for me.“

What are the chances?

Recent statistics show that:

1.10 million Australians are disabled by long-term heart, stroke or vascular disease (Source: AIHW, 2004)

One third of women and a quarter of all men will suffer cancer at some stage in their lifetime – over half of whom will live for longer than five years after diagnosis. (Source: Cancer Council, 2008)

Only 31% of Australians insure their ability to earn an income with income protection insurance (Source: TNS/IFSA, 2006)