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Your Income Protection Insurance Occupation Category - What Does It Mean?
Your Income Protection Insurance Occupation Category - What Does It Mean
?Income protection insurance can be one of the most complicated (though admittedly, the most worthwhile and potentially valuable) types of insurance to take out. One of the many factors which play into your ultimate income protection insurance premium is the category your occupation fall into with a particular insurer.
What Are Some Common Occupation Designations?
Every income protection insurer's occupation codes vary. However, it is common to see designations such as:
White collar professionals
Medical professionals
Legal professionals
Light skilled occupations
Supervisor of manual workers
Licensed tradespeople
Manual but not hazardous workers
Hazardous workers
Sometimes you will be classified differently depending on whether you have completed a university degree, how long you have been in your current occupation, and the insurer's subjective assessment of the risk involved in your job.
Why Is My Occupation Code So Important?
There are two reasons that your income protection insurance premiums are closely linked to your occupation. The first is that any injury you receive while at work is likely to impact on your ability to do your job ... and therefore your likelihood of having to make a claim on your insurance. The second is that some occupations generally pay more than others, and if you are in a higher-paying job, your insurer will have to make higher payouts at claim time.
What Are the Differences Between Occupation Codes?
The most obvious difference is that some occupation codes will have to pay higher premiums for income protection insurance than others! However, there will also be some features which are available to specific occupation codes and not to others, for example:
Some occupations are not eligible for shorter waiting periods
Some occupations are not eligible for longer benefit payment periods
Some occupations have a lower maximum entry age
Some occupations are eligible to take out business expenses insurance along with their income protection
Some occupations are not eligible for higher level cover or 'premier' plans
Some occupations may only be able to take out reviewable plans - non-cancellable plans may not be available with all insurers
Some occupations may only be able to choose stepped premiums, or an 'any occupation' definition for their policy
Occupation Codes and Shopping Around for Income Protection!
We mentioned that your occupation category has a significant affect on your premium. This is one of the base reasons why it is always best to shop around for an income protection insurance policy - a slight difference in the way your work is classified can mean hundreds of dollars difference to your premiums, independent of all the other factors that can help push that final figure even lower!
Additionally, don't assume that the features and conditions you want simply aren't available to you because one, two or three insurers won't offer them to your occupation. The income protection insurance market is large ... your job shouldn't limit you! How to Stop Your Bulldog From Drooling Buying a Bichon Frise Terrier Guide Petrol Prices Still Rising How To Find A Reputable Bulldog Breeder Choosing The Best Bulldog Breeders Bulldog Breeders- Make The Best Of All!! Dogfish Head Reduces Their Distribution Lines The Benefits of a Foam Bed for Your Dog Pet insurance Ireland: the best what your pet needs Tend To Be Banfield Pet Insurance Profiting In The Misery? LPG Prices Are Much Less Than Petrol Finally, a Win for the Underdog Pet insurance UK: this is what they actually require