Income protection insurance is a technique that ensures your income if you are unable to work under the circumstances of injury or illness. It suites all working people, and the actual premium you will receive solely depends upon the length of time and age. Income protection (IP) or critical illness insurance is designed to fulfill the living cost of people rather than payout after the death.
Usually income protection help you to provide a cover for about 75% of the working person salary or depend how much you going to insure .All you need is to assess the requirements of mortgage and other debts , spouse, children or other dependents. One thing is for sure; it will provide you steady stream of income in case you are sitting unemployed.
If you look around, you will find numerous companies with huge differences of covers and prices. Keep one thing in mind; premiums on income protection are not exempted from taxes, and policy costs you one week’s salary. Generally premium fixture relies on: Age (The more you get older the more premium you may get); Gender; Health and pre-existing conditions; your smoking habit; Occupation; and Time after which you wish to start receiving payments.
Your local adviser can make things easier for you while opting for income protection insurance. Albeit there are various angles and must be considered prior to finalize the agreement. We advised in your financial matters professionally and vigorously. We have compiled following some of main factors that might affect you in this process:
• Always consider a policy with index-linked premiums and cover; as you know covers will shoot the inflation
• You must be aware: What is covered and what is not; how much payout would be and cost of insurance premium.
• In many cases insurance companies reassess your health condition before renewing the policy; therefore non-cancelable policy is good option at this time
• You must read every clause carefully because it could hold your payouts
• In case of group insurance make sure about your beneficiary
• Check the benefit period and waiting period.
You are also advised to understand the terms and conditions very well .Because you can be faced claim rejection due to implications of various conditions under policy .
Wednesday, December 2, 2009
0 comments