By Katherine Life is full of uncertainties. Having a stable career and keeping it is an important part of our everyday life. But what happens when your health suddenly fails you? Do you have the necessary funds to keep you afloat during your recuperation days? To avoid the stress of being unable to work and still paying off ongoing expenses, avail yourself of income protection insurance.
What is Income Protection Insurance?
Income protection is a scheme that covers you in the event that you cannot work due to medical reasons. It gives out a monthly amount you can use to pay off ongoing expenses while unemployed. However, it is essential to take note of how much compensation you will get from the insurance. Insurers usually cover up to 60% of your monthly income with a policy. However, this number may vary depending on which provider you choose.
What Does The Income Protection Insurance Cover?
Learning about what medical conditions the income protection insurance covers is imperative. Most providers cover several health conditions, including mental health conditions, musculoskeletal injuries, and other serious illnesses. It is also essential to remember that to be eligible for a claim, a licensed health professional must sign off on the presented medical condition that will be used for approval.
Income Protection Cost
As for most insurances, a protection policy’s cost depends on existing medical conditions and the amount of risk present. This varies from one person to another. Always consider that in buying protection coverage, you must note variables such as the coverage amount, length of insurance duration, waiting period and whether it is for a full-term or short-term plan.
Is Income Protection Insurance Allowed For Persons With Existing Health conditions?
A medical condition may hinder you from availing yourself of income protection insurance. However, it is possible to buy an insurance policy even with a health problem. However, approval will depend on the nature and severity of the declared illness.
It will be expensive to get insured and could subject you to an exclusion clause added to your current policy. In addition, other insurers may deem you ineligible for insurance coverage, given your present medical condition.
Income Protection Waiting Period
All income protection insurance policy comes with a dedicated waiting period or deferred period. The waiting period pertains to the gap between the period of becoming unable to work and starting to receive your monthly insurance payments. The waiting period isa determined when you decide to take out a policy and can range from 1 day to 52 weeks, depending on the insurance provider. It also affects the price of the policy. The longer the waiting time, the lesser the monthly premium will be.
Key Takeaways
Income protection insurance is a great way to safeguard yourself when a sudden inability to work occurs. It allows for a monthly amount to be received that can then be used to pay off existing debts. However, knowing the terms and conditions that must be met per insurance policy is crucial. Therefore, you must raise the necessary queries to the selected insurance company agent to avoid misunderstanding and unwanted technicalities.