Taking out insurance when you buy a car in case of an accident or in the event that it gets stolen is mostly considered standard practice. Most people also have cover for their homes and their household possessions in case of fire or theft. A lot of people take out life policies to make sure their loved ones are not left having to face any financial strain in the event of the policy holders death. Something that might not be as common but is just as important though is income protection insurance.
Income protection insurance does exactly what it says. It protects your income in the event that you as an individual are unable to continue to work. This may be due to an accident or an illness. It is important to note that income protection insurance does not apply when a person becomes unemployed.
This type of policy is not to be confused with workmans compensation. It is a personal policy to be taken out by an individual and has nothing to do with the company that you are employed by. In the event that the policy holder becomes incapacitated due to accident or illness a certain percentage of his or her salary will be paid out by the insurance company on a weekly or monthly basis.
Depending on the circumstances a person may only be unable to work for a number of months. If this is the case the policy will pay a certain amount for this period. If a person is not able to work ever again the policy will pay out until the policy holder is legally old enough to retire. Most of us have heard the saying prevention is better than cure and when it comes to insurance this is certainly true.
The amount paid out by the company is exempt from tax. It is usually enough to cover an individuals most basic monthly expenses such as the repayments on a mortgage loan and putting food on the table. Percentages vary from policy to policy but it mostly averages around seventy percent.
Just like a car or a house a persons income is an asset. It could be one of the most important insurance policies you ever take out. The policy you choose should be tailor made to fit your needs. It will depend on the kind of work you do. If you are a truck driver and you break your leg you will not be able to drive for six weeks and this should be included in your policy.
In order for you to claim from such a policy your injury or illness has to mean that you are incapable of performing the duties you are normally responsible for. There may be clauses that specify that you are not able to claim for certain things. These may include illnesses connected to addictions or if your injury stems from illegal activity.
If you need to make a claim towards your income insurance policy its important to realize that it can take some time before the payments are actually made. Insurance companies have the right to investigate any and all claims. To make sure that you get your payments in a timely fashion you should submit your claim as soon as possible.
Income protection insurance does exactly what it says. It protects your income in the event that you as an individual are unable to continue to work. This may be due to an accident or an illness. It is important to note that income protection insurance does not apply when a person becomes unemployed.
This type of policy is not to be confused with workmans compensation. It is a personal policy to be taken out by an individual and has nothing to do with the company that you are employed by. In the event that the policy holder becomes incapacitated due to accident or illness a certain percentage of his or her salary will be paid out by the insurance company on a weekly or monthly basis.
Depending on the circumstances a person may only be unable to work for a number of months. If this is the case the policy will pay a certain amount for this period. If a person is not able to work ever again the policy will pay out until the policy holder is legally old enough to retire. Most of us have heard the saying prevention is better than cure and when it comes to insurance this is certainly true.
The amount paid out by the company is exempt from tax. It is usually enough to cover an individuals most basic monthly expenses such as the repayments on a mortgage loan and putting food on the table. Percentages vary from policy to policy but it mostly averages around seventy percent.
Just like a car or a house a persons income is an asset. It could be one of the most important insurance policies you ever take out. The policy you choose should be tailor made to fit your needs. It will depend on the kind of work you do. If you are a truck driver and you break your leg you will not be able to drive for six weeks and this should be included in your policy.
In order for you to claim from such a policy your injury or illness has to mean that you are incapable of performing the duties you are normally responsible for. There may be clauses that specify that you are not able to claim for certain things. These may include illnesses connected to addictions or if your injury stems from illegal activity.
If you need to make a claim towards your income insurance policy its important to realize that it can take some time before the payments are actually made. Insurance companies have the right to investigate any and all claims. To make sure that you get your payments in a timely fashion you should submit your claim as soon as possible.
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Search for infomations regarding income protection before purchasing one. Remember that income protector is available on the net.
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