These days you can find insurance to cover almost any situation, your home, car, health, life, TPD and trauma. Most people will be familiar with these types of insurance, and some might even have several of these insurance policies in place. They each have their benefits as well as limitations when it comes to the payout terms in your time of need.
Income Protection Insurance is another type of insurance that is gaining widespread acceptance and with very good reason.
If you think about it, safeguarding your income could be the most important type of insurance you have, as it provides an income stream if you’re unable to work due to illness or injury.
Now, you may think that your life insurance, TPD or trauma insurance will cover you in such circumstances, but as mentioned earlier, these types of insurance have their own set of specific criteria that you need to meet before any payout is made. And furthermore, these lump sum payments may not be enough to cover you or your family if you’re out of work for a long period of time or if you cannot work again.
Income Protection is a monthly benefit that pays up to 75% of your income if you have an accident or illness. Income Protection will cover you financially until you’re ready to return to work, or if you can’t return to work until retirement age 65.
Income Protection is tax deductible, unlike other types of insurance, and is designed to cover your every day expenses like mortgage/rent, utilities and groceries while you recover. That’s a huge stress relief!
Most income protection policies are flexible and can be tailored to suit your personal circumstances.
You can choose the waiting period from as short as fourteen days or as long as two years before receiving your first income protection payment. Choose how long you want to receive benefits for, whether it’s two or five years or until retirement age 65. Plus you can choose between an agreed value and an indemnity value policy. An agreed value policy will cover you for the agreed upon amount decided at the time of coverage, again this is a more expensive option. Alternatively, you can choose an indemnity policy, which will pay you based on your earnings at the time of making your claim.
Naturally, factors such as your age, gender, and type of occupation will need to also be considered to determine the cost of your premiums.
Income protection insurance may seem like yet another expense, but if you suddenly find yourself unable to work, income protection offers you and your family a lifeline that will keep you financially afloat in your time of need.
Find more Information on getting Income Protection Insurance Quotes