Any unfortunate incident happens and your life will take a 360-degree turn. What if you suddenly get ill, disabled, or not able to work, how will you suppose to support your family? This must be a shivering dream, but you can turn this worst nightmare handled accordingly with having income protection insurance. This is true that life is unpredictable you can’ avoid mishaps but can handle that wisely though.
Income protection insurance cover can help financially with these circumstances. This cover provides 75% of your pre-tax income for the benefit period under the policy. The income is calculated your benefits based on the 12 months income before you make a claim. For a detailed understanding, you have to look through the facts mentioned below which will help to finalize your decision.
Look For The Various Options Available In The Market– Today, the market is full of insurance providers in Australia and everyone has a different underwriting process. This makes it even tougher to find the right option for you. Never make any hush decision and go for the first policy you find. Instead, you need to search for various options and compare various policies before making a final choice. You can also talk directly to the service provider about the features in the income insurance policies and this information will help you choose the most suitable policy as per your requirements.
Insurance Cover Inclusions- You need to consider that when you are in a particular situation, and if you don’ require 75% of the income coverage, then there is no need to pay extra premiums. You need to get ready with the calculation of 75% of the pre-tax wage. You can use this as the baseline and then note down the daily household expenditures like utility bills, mortgage, and personal loan payments. Consider other expenses like school fees and groceries too. This calculation will give you an estimated expense. Then compare it to the 75% of income figure. Get the insurance cover that is exactly fitted to your requirements as little less will end with the financial burden for extra premiums, you need to pay extra money. A professional will help you guide you with which will be most suitable for you.
Consider The Events May Lead to A Claim- income protection insurance offers insurance coverage when you are ill or suffering from any injury. Such conditions may not make you able to resume work for some time or permanently and you are eligible to ask for a claim. You are not eligible for the claim when you are fired from the job, so, make sure about the circumstances. When lodging a claim, the insurer will ask for proof of income and check for at least the last 12 months of income and then you can only sign the policy.
Check For He Waiting And Benefit Period– When you are lodging a claim, then you have to undergo a waiting period before you get paid under the income protection insurance. You are most likely to be paid under 30, 60, or 90 days based on the terms of your policy. Generally, the claims with a shorter waiting period have an increased cost in comparison to the ones with a long waiting period.
The benefit period for the policy will decide in how much time you will receive the money after you ask for a claim. These are based on your policy and if you choose for the short benefit period, then you need to pay for the lower premiums. This means your premiums will stop at the end of the period you decided even if you are unable to resume the work after that time.
Conclusion- Life is unpredictable and you need to be ready to deal with any such situation with an apt insurance cover option. This may happen at some point in time you have not been able to resume your work due to illness or injury temporarily and permanently, but if you are available with the income insurance policy, then this will keep your financial security to manage your expenses on that time. Integrity Insurance Solutions are the leading insurance company in Brisbane, with our years of experience we will look through your conditions, and requirements and then offer you the most suitable personalized insurance policy which will make you able to deal with any situation.
