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What is an income protection insurance plan?
Income protection policies provide an income that starts after a deferred period of your choice if you are unable to work through sickness or injury.
These types of policy usually have a fixed term to retirement age 60 or 65.
Once the income protection policy is accepted by the insurer the premiums cannot be increased or claims refused regardless of the number of legitimate claims.
There is a maximum insured income limit. Levels of income protection cover may vary but may be in the region of 50%-65% of previous income.
Income
protection insurance premiums.
Income protection premium rates are based on occupation, age, health, level of cover, term, deferred period, sex and smoking status.
Some insurance companies have introduced reviewable premiums that increase dependent on overall claims experience.
Types of income protection policy.
There are many different types of income protection policies
available. Great care must be taken over examination of the circumstances in which the insurance companies will pay out.
If as a result of sickness or injury you cannot carry on your normal line of work, the insurer may not admit the claim unless you are incapable of performing any paid employment.
Benefits from an income protection insurance
policy.
Generally the benefits from an income protection insurance policy are
not taxable.
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