What’s the answer to protecting your income throughout life? For some people, the answer could be as simple as income protection insurance. Income protection insurance protects us when we suffer from an illness or injury whether the event is work-related, or not.
Income protection works by insuring a percentage of our income and pays monthly benefits when we are out from work. It is insurance cover that each person that earns a living should consider. Permanent disablement is out of our control and could last a lifetime. Cancers are on the rise, with over two hundred types alone. It is a day and age, where uncertainties are great, and we must consider our future, and where it would be should we no longer be able to provide for ourselves or our family.
Self-employed individuals are especially vulnerable to financial pressures should they no longer be able to operate their business- even if the interruption is temporary. Income insurance eliminates the financial risk.
Income protection insurance can cover up to 75% of your income and typically benefits are paid monthly. It is a protection for everyone.
Income protection is offered in two separate policies: Agreed Value and Indemnity Value. To discover more about income protection insurance and be connected with leading Australian insurance companies who provide income protection, Income Protection Direct invites you to stop by our site at www.incomeprotectiondirect.com.au/.
What is Income Protection insurance?
Income protection is an insurance type that offers a steady source of income should you become incapacitated due to an injury or sickness. The benefits are not paid as a lump sum, but monthly. Usually, the amount covered under this policy is 70-75% of your net salary. There are number of choices that can be made on this protection policy, such as- you can choose the waiting period and the claim benefit period. You can visit Income Protection insurance to know more on the choices provided by this insurance.
What is the need for income protection insurance?
Your income is probably the best means to support your living standard and to pave a smooth life after your retirement. But where would you be without your income? You would possibly not be able to continue with your current living standards without a regular source of income. Thus, protecting your income is a wise decision. Unlike Trauma insurance, Income Protection insurance does not detail out a list of accepted condition, as a result better coverage is offered for temporary diseases.
How much cover can I buy?
In case you are self employed, then 75% coverage you will get of the income generated by your business. And, if you are salaried, then 75% coverage you will get of your current gross income. Unlike other types of personal risk insurance, Income Protection insurance premiums are tax-deductible for most taxpayers. The after tax cost of the cover can be much less than the cost of the premium.
- Waiting period: The waiting period involves the time period that you have to wait before you are eligible to receive payment under your policy following a claim. When choosing a waiting period, determine commitments such as mortgage and other debt payments. You will not be able to claim your benefits until the expiry of the waiting period. Shorter the waiting period, the better.
- Premium: Comparing premiums can be of help in identifying the cost effectiveness of each policy as a first step in achieving the best overall package for your conditions.