Compare Income Protection Insurance: Considerations To Keep In Mind
Injuries or debilitating illnesses could occur at anytime and compromise your ability to work, but this does not mean that your payments and other financial needs will go away.
You will still have to keep up with your monthly payments and provide for your family, which is why you need income protection insurance.
The good news is that you get to compare insurance to get the best deal since many insurers today provide this type of cover. As such, there are certain considerations you must make when choosing between different insurers.
The most important factor you must keep in mind when looking at different income insurance protection policies is probably the amount of premium you will have to pay. This will be determined by a number of factors including:
Amount to insure
When you compare insurance policies, you need to consider the salary amount you want to insure. Generally, this type of insurance covers for about 75 percent of your salary subject to a maximum limit of 10,000 dollars, but you could also choose to cover as low as 1000 dollars. While covering a larger portion of your income will probably cost you more, you may also get a premium discount depending on the insurer.
This is the length of time you will receive payments and you can choose a benefit period of 2 years, 5 years or even up to age 60 or 65. Note that while some policies pay out if you are unable to perform your normal occupation, some will only pay if you cannot perform any type of work.
This is the period that you will have to wait after being diagnosed with an illness or injury before your benefit period begins. This could range from 2 weeks to 2 years, and a longer period could translate to a cheaper policy. However, the waiting period you choose will probably be dictated by how much savings you have.
Different insurers will provide varying additional benefits that you can choose depending on your needs. Note that additional benefits will translate into higher premium payments as you compare the options.
Terms and conditions
When you compare income protection from different insurers, it is important to pay particular attention to the terms and conditions as well as the definitions for the key terms in the policy. This will help you understand what may or may not be covered in the policy, and what kind of protection you will get ultimately. In addition, be sure to ask whether the premium payments are subject to change in the future.
You can easily compare insurance from various providers online. Once you know what you need and your preferences, this should not be difficult. You can also apply for insurance quotes from different insurers based on the factors mentioned above so you can get the exact amount you would have to pay. Note that premium payments can be made fortnightly, monthly or annually, and some insurers will even offer a discount for annual payments.