Income Protection Insurance is a particular type of insurance that pays out if you are not able to work as a result of injury or sickness. It pays out anytime before retirement, until you return to work or if you die.
The money received is only a portion of your regular income (tax included) and is usually about half or two-thirds of your monthly income.
When and how to claim Income Protection Insurance?
Income protection payments cannot be claimed right after you fall sick or become physically compromised. A minimum waiting period of one month should be allowed before payments start, however, the payments can go up to 24 months after you stop working.
How much does income protection cost?
The premium costs of income protection insurance depend on your age, your health, your other habits that could affect your health (for eg. Smoking, excessive drinking, drug use, etc). Apart from these factors, the cost of the insurance will also largely depend on your occupation, particularly the risk factors included in your day to day job. The higher the health risk of your work, the higher the cost of your income protection insurance because you have a higher chance of filing your claim.
Types of Income Protection depending on Term length
Income protection insurance can be long term or short term.
A long term income protection covers you for until the income protection cover ends or until you resume work, pass away or retire, whichever comes first.
A short term income protection covers you from involuntary redundancy at work.
Benefits of Income Protection Insurance
The benefits of Income Protection Insurance are as follows:
- Payment is received monthly
The insurance payment is received monthly and compensates for the lost income.
- Variable or Fixed benefits
While applying for your insurance you have the option to choose the type of cover you want. Apart from that, you have an option to increase your value of monthly premiums to increase the corresponding value of cover.
- Flexible Cover Amount
You have the option to choose the payments receiving dates and the duration in case you are unable to return to work.
It is highly advised that you read all policy-related documents carefully and thoroughly.
We would recommend you to talk to one of our advisers for life insurance quotes.
Any quote that your adviser provides you with will take into account your circumstances, your medical history, as well as your budget!
Call 011-3733-4610 – Monday to Thursday from 11.00 to 19.00 and on Friday between 11.00 and 16.00