Whether you are young and single, middle-aged and married or on the brink of retirement, income protection insurance is something that all employed people should consider. Think about it - your income is one of your most valuable assets and if you suddenly had an accident or became ill or injured and couldn't earn an income, what would you do? This is where income protection cover can help. Designed to do exactly what its name suggests - income protection insurance secures your income in the event that you cannot work due to an accident, illness or injury.
Instead of the bills stacking up on the kitchen counter, income protection insurance offers you the peace of mind that you will be able to make the necessary payments you need to.
Most income protection insurance policies will cover up to 75% of your salary and dispense payments in installments monthly. This protection ensures that you can maintain your independence and/or help you and your family to maintain your lifestyle and a level of financial normality.
Most importantly, it gives you the peace of the mind to concentrate on your recovery or treatment, without worrying about everyday expenses.
Income protection insurance is offered by a number of different providers and each policy varies. The good thing is that most are extremely flexible, allowing you to tailor the right package to meet your individual needs and circumstances.
With an insurance professional walking you through the process, you can either choose an 'agreed value' or 'indemnity' contract. With an agreed value contract, you decide on a monthly payment amount that you will receive in the event you ever need to make a claim. An indemnity contract is slightly different in that the monthly payment you receive will be decided upon at the time you make a claim.
Like similar other insurances including life insurance, income protection packages usually come with waiting periods. The length of the waiting period you choose will have an impact on the cost of your premiums so it pays to think about income insurance when you are fit and healthy, not when you are injured or ill and need it the most. Waiting periods can range between as little as two weeks to two years, and generally the shorter the waiting period the more expensive the premium.
Benefit periods are another important factor to consider when selecting income insurance. The benefit period refers to the length of time you can claim for income assistance. You can generally choose between a two or five year period or up to a certain age.
So you see, there are so many benefits associated with income protection insurance. It provides you with peace of mind that you and your family will never have to struggle should accident, illness or injury prevent you from working... and I think you'll agree, that's priceless.
By the way, do you want to learn more about insurance? If so, I suggest you check life insurance and income protection insurance.
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