Income Protection Insurance
If you are the breadwinner of the family, you would be often bothered about how you would be able to provide for your family in case you get sick and cannot go to work. You know your savings would be able to cover you the ensuing months. This is a gigantic problem if you do not know the solution to it. The solution to this problem is very simple though - Income Protection Insurance.
What is Income Protection Insurance?
Also called permanent health insurance, it is a type of insurance that would cover you in the event that you cannot go to work because of sickness, accident or injury. You can claim up to 50% to 75%v of the gross salary tax free, depending on the insurance that you have purchased. It does not include redundancy cover, so it can be expensive. Some companies though allow multiple claims.
Types and cost of Income Protection Insurance
Employed by company - the premium of your Income Protection Insurance will depend upon your type of work, monthly income, age, health status and deferment period. Deferment period is the time that the insurance pays out. The longer the deferment period, the cheaper your premiums would be.
Self-employed - aside from your taxable income, the same aspects, like the former, will also affect your premium.
You premium would depend upon whether your Income Protection Insurance is comprehensive or not. You have to determine if your company does not cover such event, then you can purchase Income Protection Insurance.
The Income Protection Insurance is good for self-employed persons who do not have the same benefits accorded by a company.
Some premiums increase regularly as you grow older, while some allow you to pay the same premium for the whole package. Some also offer a cash back plan.
Points to remember when buying an Income Protection Insurance
If you are working for a company, your company usually covers this eventuality. If not, you can always request one.
If you need to apply for Income Protection Insurance, you have to make sure that a double coverage is recognized by the insurer, otherwise, you cannot claim from it. If you are allowed to claim, it could also affect the maximum benefits you are supposed to receive.
Self-employed persons usually benefit most from the Income Protection Insurance.
Some insurance companies do not allow change of premiums once you accept the Income Protection Insurance policy.
Read the details of each insurance company and compare prices and services before signing up for one.
Obtaining the comprehensive policy is the best, if you have the financial means to do so.
Income Protection Insurance can serve you best if you know how to select properly a policy that would respond to your needs.
Companies that offer Income Protection Insurance
Choosing a reliable and affordable Income Protection Insurance Company should be your target. To help you with your choice, here are some companies you can select from: British Insurance, Lifesearch, Best Insurance, Exeter, and Insurance Protect.
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