Income protection insurance is currently one of the most popular and sought-after types of insurance products in Australia. This is not surprising because it intends to provide continuous income stream in case an individual suddenly becomes unable to continue earning’s to a serious ailment or physical injury. More appealing to customers is the fact that such insurance products pay benefits on a monthly basis instead of as a lump sum. The covered amount is usually restricted to about 75% of a policy holder’s gross income in a specified period.
There are several insurers today that offer income protection insurance products. Which among those provides the best income protection in the country? You be the judge. By carefully looking at terms, conditions, and rates of each income protection insurance policy before buying, you would find out for yourself that some products are obviously more advantageous than others. Some products require higher premiums but that does not make those inferior to competitors because there could be much higher benefits provided and better terms. To identify the best, there is a need to carefully look at these important factors.
Waiting period – Waiting periods are usually set at 14, 30, 60, and 90 days after a claim is filed. The best insurer would allow you to have flexibility when setting the period for benefits waiting.
Claim Escalation – This is an important option during claims as it would help ensure that benefits paid on a regular basis are also adjusted based on inflation.
Occupation-based premium – The insurer should base your premium size on occupation. For instance, white-collar jobs should be charged lower premiums because of lower risks of physical injury than blue-collar workers.
Total disability – Most income protection insurance products have different definitions of ‘total disability.’ Carefully check whether you agree with the definition set so you would not have misconceptions and misunderstandings when considering filing for benefits claims in the future.