Over your working lifetime, there are possibilities of you becoming disabled before retirement age. With this thought in mind convinces you to consider income protection insurance.
One thing that people struggles with when the word insurance is brought out is its complexity. There are so many terms you have to understand about income protection insurance. This article makes us understand the importance of income protection.
Here Are Some Issues You Need to Clear Before Getting Coverage
Why Do You Need Income Protection Insurance?
It ensures your wages against the danger of accident, injury, sickness and unemployment. It replaces part of the income if you are unable t work.
Income Protection Insurance also is known as Permanent Health Insurance covers you for an extended period. Typically you are covered until retirement age. In cases where you are unable to work again, Income Protection will pay you for the entire duration of your policy.
What Are the Benefits You Can Get from Income Protection?
Income protection has comprehensive coverage that covers your earnings in the eventuality that you are unable to work due to accident and illness.
If in case your inability to work is due to work redundancy, you are still covered if your option includes Unemployment Insurance.
If are confused, Life’s Great income protection insurance agents are willing to explain and help you understand the issues boggling your mind.
How Much Income Protection Insurance Do You Need?
This depends on the insurer. Every family or individual has separate need and unique as well. The amount you will require depends on different factors. Typically, Income Protection policies offer you between 50-70% of your pre-tax income.
The first thing you need to consider is your outgoings. How much are your main outgoings? You have to ensure that the monthly payout will be enough to cover your payables.
Your agents will not only help you get quotes; they know how much the insurer is willing to cover.
Should You Buy Income Protection and Critical Illness Insurance Together?
Insurance agents say that Critical Illness is cheaper than Income Protection because it covers fewer conditions. If you are on a budget, buy coverage for Critical Illness
Critical illness covers a maximum of fifty serious illnesses. The most common reasons are cancer, heart attack, and stroke. Once diagnosed with a qualified disease, payment is made once in a lump sum amount, and once the policy has paid out, coverage ends. You have the option to insure yourself at any amount, providing the premiums are affordable and practical for you.
Will Income Protection Insurance Pay out When You Require It?
As insured person, your number one concern is whether your insurance company will pay when you need it.
According to Association of British Insurers claims are declined only if the customer does not disclose relevant information. Furthermore, ABI reported that in 2015 91.2% of income protection claims were paid.
Disclosing crucial information is essential when you buy any insurance and in this case Income Protection Insurance.
In buying Income Protection Insurance choose the right company with good track record. Life’s Great income protection insurance agents are willing to give advice before making a decision.