To understand in detail how this type of insurance can be a life saver, it is important to understand how this type of insurance works. To avail of the benefits offered and to get the first compensation payment from the insurance company, the policy holder has to file a claim shortly after he cannot work due to medical reasons. After the claim is filed the insurance company will either approve or reject the claim. If the claim has been approved then the buyer will get the first compensation amount after a certain number of days known as the waiting period.
The waiting period can range from 14 days - 2 years and the buyer may be given a choice to select this waiting period at the time of buying the policy. After the waiting period has ended, the buyer will get the first compensation amount, after which he will get timely compensation amounts every month till the end of the benefit period or till he becomes well. These compensation amounts can be used to pay debts, to pay for bills or to pay for other things required by the policy holder
Although income insurance policies are ideal for everyone, these plans are especially beneficial to certain people. People who have dependants such as elderly parents, children or relatives that they have to take care of on a regular basis should opt for income cover plans. People who have debts and constantly worry about paying them when they are unwell or injured can benefit from purchasing income insurance plans. People who earn above $20,000 annually should also consider opting for such plans especially if they are the sole bread winners of their family.
In a nutshell it can be concluded that, income protection plans are designed to help people live a normal life when they cannot work temporarily due to health reasons. If you want to protect your future and you want to ensure that your family's needs are met when you cannot work then you should consider getting a policy that will protect you while you recover from illness or injury.