In today’s times of financial uncertainties, it is a smart move to have an alternative source of income in case of emergencies. If you want to ease your worries about paying the bills if you lose your job, income protection can cover your income against unforeseen unemployment.
However, before buying this cover online, let us first understand income protection insurance.
Income Protection Insurance (IPI) is an income insurance policy that pays policyholders a fixed amount of money either weekly or monthly if they are unable to work due to illness or accidents.
Otherwise known as salary continuance insurance, this type of insurance can pay up to 75% of the gross annual income of the policyholder in the event that the policyholder is unable to work due to illness or injury.
Usually, a good policy pays out after 30 days that a policyholder is unable to work and will continue to pay out until the policyholder is able to return to work or until the cut-off age of 65.
Importance of Income Protection Insurance
In this current economic climate, amongst the best insurance policies to get is income insurance for it provides a number of benefits in comparison to other insurance policies such as:
1. Peace of mind for it will provide financial security in the event of unforeseen circumstances such as unemployment due to illness or injuries
2. Payments of benefits are paid regularly either weekly or monthly
3. Payments of benefits are payable in times after the policyholder is unable to work and will continue until the policy holder returns to work or until retirement or the term of the contract ends
4. The monthly or weekly benefit payments paid from the policy to policyholders are free of income tax and National Insurance contributions
5. Insurance company does not have the authority to cancel or refuse to renew the policy provided that the policyholder continues to pay the premiums
6. May provide a waiver of premium option whereby IPI policy premiums are not required while the policy is paying benefits, but the policy cover continues as normal
7. Provides additional benefits that are usually offered for no cost that includes death benefits, cosmetic, or other surgery benefits and transplant benefits
Income insurance provides the needed financial security and peace of mind that you and your family need should you become disabled and unable to earn an income.
There are many insurance companies online that offer income protection insurance. If you want to have the best and the most suitable for you, compare income protection insurance rates and benefits and all other significant details. In this way you will be able to choose from the numerous numbers of insurance companies that offer the most suitable for you.
Choose an income protection policy with the right level of cover for your situation – consider income protection insurance’s limitations on how, when, and for how long you are covered. Do not hesitate to do a thorough research online or ask your friends and families who have already purchased such insurance. In this way, you will be suitably informed of the best income protection insurance for you.
