What is Income Protection?
Income Protection Insurance is used to replace income that is lost through the inability to work because of an injury or sickness. This insurance can benefit you, especially if you have a family and major financial responsibilities, by ensuring that your income is protected even if you can’t attend work.
Your income protection insurance amount will depend on the salary that you want to insure. It can cover up to 75% of your salary in the event that you are unfit to work.
When seeking income protection insurance, here are some guidelines that you can consider:
Determine the coverage of your insurance:
One of the most important things to find out about your policy is what it covers and what it excludes. Also, it is essential to know what your claim amount will be and how your insurance premium will change over time. Furthermore, you must be aware of the waiting period after which you will start receiving your benefit.
Understand index-linked premiums:
Index-linked premiums assure that your payout increases in line with the retail price index. This means the value of your cover will keep up with inflation.
Consider non-cancellable options:
You may also want to consider a non-cancellable policy so that your insurance company won’t need to re-assess your health and other insurance factors every time you renew your insurance. The re-assessment can raise your premiums or the insurer might refrain from covering your insurance if your circumstances have changed.
Group Insurance:
You may want to keep in mind that group insurance, provided through super funds, is an agreement between the insurer and the trustee. Therefore, it is important to know who your beneficiaries are.
READ YOUR PRODUCT DISCLOSURE STATEMENT:
The most important thing is to read through the relevant Product Disclosure Statement to understand your policy and the benefits you are covered for.
Related posts:
- Income Protection Insurance An Income Protection Insurance is used to replace the income that is lost through the inability to work because of...
- Life insurance offers peace of mind Life Insurance is a lump sum payment that the dependants of a deceased insured person will receive. This money can...
