Income Protection Insurance Age Limits – Are You Eligible?
When you have income protection insurance, you can receive upwards of two thirds of your regular salary in case you lose your income due to a debilitating illness or injury.
There are income protection insurance age limits that dictate your eligibility for coverage.
In most cases, this type of cover is available to individuals between age 18 and 59. However, some insurers will allow you to apply for coverage until you are 64 years. In addition to your age, there are other eligibility requirements that insurers apply for potential policy buyers.
Age limits is largely meant for working individuals, whether you are self-employed or employed by someone else. In addition, most insurers will only provide coverage if you were working a minimum of 20 hours every week in permanent employment for a minimum of 12 months before you made the policy application. If you are self-employed, you may be required to have been working for at least 2 years before the policy becomes effective.
Older insurance buyers are also prone to greater scrutiny during the underwriting process than younger buyers. This assessment is mean to determine whether you can be insured. Note that your application for insurance coverage may still be rejected by the insurer for several reasons apart from failing to fall within the age criteria for that particular insurance product. For instance, your health and lifestyle may not meet the eligibility for an insurer to deal with since it may be considered too high a risk for the insurer to cover.
Your income protection level is largely influenced by your salary. If you are employed, the benefit is usually 75 percent of your current gloss salary. If you are self-employed the benefit is usually 75 percent of the income you generate via your business and personal endeavor, but your share of expenses is deducted. Some insurers also lower the benefit amount if your income exceeds a certain limit. Most people assume that their Workers Compensation is sufficient to protect them against income loss. However, it is important to note that Workers Compensation will only pay out if your injury is directly related to your work.
It should also be noted that income protection benefits are only applicable for the period you are expected to work. As such, the longest benefit period in most cases is your retirement age, usually 65 years, or the anniversary of the policy after your 65th birthday. Your age may also determine the policy brands that are available for you to apply for. For instance, if you are above 59 years, you may not be eligible for certain levels of coverage, or you may have additional exclusions in your policy, or higher premium rates.
Although the age limits may make it more difficult for older buyers to obtain coverage against loss of income, this does not mean that it is impossible. You should compare income protection insurance products from different insurers to identify the best policy with the best possible terms. You could also get help from your financial planner or click here when you are trying to get favorable terms for income protection cover.