In the current global financial turmoil, having an alternative source of income can help a lot especially during severe financial distress. What will happen if you suddenly lose your job? Who will support your family’s needs? Who will pay for tuition fees, the mortgage and the monthly bills? These are only few of the endless things to worry about in case of sudden unemployment. If you’d like to ease these worries, it’s time to consider investing in income protection insurance.
Income Protection Insurance (IPI) is an insurance policy that aims to safeguard workers who are unable to work in the future due to illnesses, injuries or accidents. Quite obviously, the sudden loss of a job can result in devastating financial effects that nobody would like to experience. By deducting a fraction off your current salary, IPI can do wonders against unforeseen unemployment. IPI can pay up to 75% of your gross annual income. To claim the benefits, you will need to prove that you are financially incapacitated or unable to perform your occupation in the meantime. Typically, a good policy pays out within 30 days after you have been off work and will continue to pay out until you get back to work. You can also be covered until the end of the policy which is usually during retirement or at the cut-off age of 65.
This type of insurance typically covers payment of bills, mortgage, daily living expenses, medical and rehabilitation costs as well as the maintenance costs for businesses. The premiums of the policy largely depend on factors like age, gender, type of occupation, urgency of pay outs, lifestyle, existing health conditions, and so on. If you are young with no pre-existing health conditions and have a ‘non-risky’ occupation, you are likely to pay lesser premiums than older applicants with existing health issues and are in hazardous occupations. For people who need the pay outs immediately after the loss of the primary income, higher premiums are typically required than the ones who can wait for a few months.
Income protection insurance is a great remedy against unforeseen unemployment. Secure the future by choosing a policy that can cover your family’s needs for quite a time. To help you make an informed decision, contact a few insurance companies to compare all the details in the policies that you are getting.
If by chance you have sustained a personal injury and would like to know more about what can be done about your situation, contact Sinnamon Lawyers on 1800 007 277 to arrange an obligation free appointment or seek our expert advice about your legal position following an accident.