subject: The Importance Of Comparing Income Protection Insurance Policies [print this page] There are still a large number of people in Australia who understand the benefits of life or health insurance but remain unaware of the benefits of income insurance. This kind of protection can act as a cushion when you have been struck by illness or injury and are unable to return to work.
What it means
When you take out an income protection insurance policy, you pay a monthly fee which will cover up to 75% or even more of your income for the nominated period in case you are struck with injury or sickness or anything else that makes you temporarily disabled to work. The policy covers a very broad spectrum of conditions and there are often no actual lists of events for which you can claim. You will receive 75 % of your income till the end of the benefit period or until you get back to work
The income insurance and protection fee varies according to occupation, gender, age, medical history and the nomination period to be covered.
Benefits of Income Protection Insurance
Most of us dont have the luxury of having several sources of income to meet our financial obligations and it is a common occurrence that injury or illness may strike any one of us irrespective of our age. In such a scenario, an income protection policy serves to protect our interests by providing us with a steady source of income, besides security and comfort should anything untoward happen to us.
Unlike life insurance or other forms of insurance, the amount covered in Income protection insurance is not given out as a lump sum which means that you can expect to get paid continuously, as you expect from normal wages.
Even self employed persons can avail of this and it can greatly benefit them in case they have their own companies to run.
This type of policy ensures that everyday expenses such as school fees and mortgage repayments are not halted and you will be saved from financial ruin.
Unlike other forms of insurance, it is completely tax deductible so you can save on paying taxing also.
The Importance of Comparing
In Australia, there are several companies providing varied income insurance plans that you can sign up for easily. But before doing so, its very important to Compare income protection insurance policies being offered by various institutions. The best way to do is to go to an online comparison site that uses special software to help you find the cheapest policy. It makes sense to use the skills and knowledge of qualified advisors in determining the best policy for you.
Finding the most suitable policy might be daunting but not difficult if you leave it to the experts.
by: IP Australia
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