We are all concerned about falling sick and being unable to work, how can we oak the bills? The simple answer is that you need to take out income protection insurance. Of course it sounds absolutely ideal but in reality we know very little about this type of insurance. We have taken the time to help you understand everything you need to know about income protection insurance.
What is income protection insurance?
Income protection insurance, which was once called permanent health insurance) is an insurance policy that is designed to protect you long-term. It is there to help support you in the event that you are unable to work due to illness or injury.
– It will replace a percentage of your income if you are unable to work whilst you are ill or injured.
– You will be be paid until the time comes that you can go back to work again, until you will retire or the date that the policy ends which ever one will happen first.
– You will usually have to wait for a set period of time before you start to receive money from the insurance company. The payments will mostly start when your sickness pay comes to an end. If you choose to wait for long period of time then you will often pay a lower premium amount. For more information visit AAMI income protection, the site has great information about the different types of insurance offered.
What is covered by the insurance?
The policy will cover nearly every illness. But it depends on the type of policy you have chosen whether you will be covered if you are unable to work at your current role or you are not able to work at all. You need to read carefully how incapacity is defined in the policy, ask as many questions as you can think of before signing the agreement.
Do you need income protection insurance?
We believe that the question to ask yourself is, will you be unable to pay the bills if you fall ill? If the answer to the that question is yes then you need to seriously look into getting income protection insurance. You don’t need to have children to get the policy, it is designed for single people also. People that are self employed or employed that are not liable to get any sick pay need to definitely take out income protection insurance.