Millions of workers are faced with the problem of being unable to work due to serious illness or injury at one point or the other of their respective careers. Whether you have a family to support or there is just yourself to worry about, it would be a smart move to invest in an income protection insurance that would pay the bills when you are powerless to do so.
Getting injured or sick does not mean that your mortgages and other loans take a leave of absence as well. How would you manage to keep up with the payments, then? You should start to seriously consider getting an income protection cover to put your mind at ease just by knowing there is a Plan B.
Income Protection Cover, also known as Permanent Health Insurance or Salary Continuance, replaces the income you lose by your inability to work because of injury, illness or disability. It is especially advisable for people who are self-employed, owners of small businesses or professionals who may not enjoy the benefits of paid sick leaves and whose income relies solely on their ability to work. It is designed to ensure that you continuously receive a regular income until it is time for you to retire or are able to return to work.
Every income protection policy has its own interpretation of illness and disability and a range of benefits. Income protection policies normally cover for up to 75% of your gross wages for a specified maximum period such as two years or up to your retirement.
Each income protection policy has a waiting period. This means the number of days it will take before you can make a claim or how long you should be out of work before you receive your benefits. This generally ranges from 30 to 90 days in accordance with your contract. Before choosing your level of cover or waiting period, consider your leave balance as an employee and your access to emergency funds to make the most of your benefits.
It is always wise to make comparisons regarding how long it takes to pay for an income protection claim and the percentage of claims paid out among different insurance companies to ensure you are getting the best deals.
When it comes to income protection insurance, everything will depend on getting the right policy to suit your specific needs, thus, it would always be best to secure advice from a professional and independent financial adviser or broker. Take the time to call iSelect today for income protection cover that will make it worth your investment.
If the time comes for you to make a claim on your income protection cover, you will definitely need to provide proof of your illness, injury or disability. Make inquiries with your insurer as to what their requirements are to facilitate your claims and have it processed as soon as possible.
In line with the policy agreed upon, the income protection payments you will receive from an accomplished claim will be for the period wherein you are unable to work.
Income Protection Cover provides you a consistent source of cash in the unfortunate event that you get injured or ill and is not capable of working. This translates to having you focus on your fast recovery and not on where you will get the money to pay for the bills.