What Is Income Protection Insurance
Income Protection Insurance is getting very popular these days
, especially when people are into large amounts of debt. Common men rely on their monthly income to pay-back any mortgage or debts also need to maintain their living expenses; but what if this income gets stopped? You need not worry about losing your assets, if you've the right kind of insurance.Income Protection Insurance may not be necessary for everyone. Young singles with no much debt may find it superfluous. But a person with dependents, wishes to purchase a property or wants to invest in a business, should and must take up this insurance. Without which, one will risk a great deal, if an accident or an illness prevent them from working for a long time.
There are two types of Salary Protection Insurance named Agreed Value and Indemnity. The former is a bit expensive, but it will pay an agreed amount of income though you do not earn the same at the time of clamming it. So, you might earn a lot less, but the insurance will pay a percentage of the agreed amount. In the second type, there is no fixed amount promised so you'll receive a percentage of your income--at the time of your claim. So, this may be a disadvantage if you claim few weeks or months after the accident and during which you are in a condition to work only part time and being paid very less. This may result in getting very less insurance amount than needed.
Professional indemnity insurance works in a different manner when compared to the above two. This is opted by professionals who can get into a risk of litigation if their treatment/advice result a loss to their respective patients/clients. Doctors should certainly have this insurance, however, professional people such as financial advisers may also cause loss and hardship to their clients and so it is equally important for them to opt this insurance.
Business insurance quotes are there to ensure if you are getting the best insurance deal. However, it is very important to consider the features and the amount of the payment before taking a final decision. Litigation such as this often runs into millions of dollars, especially when you add in the cost of legal fees and the loss of income you will suffer during court appearances and consultations with your lawyers and insurance representatives should litigation occur.
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