Managing your essential finances is something that can be quite problematic for some. Paying your rent, mortgages, and managing everyday expenses becomes especially burdening if you have a sudden illness or accident in the family. This is when income protection insurance can come in handy.
Income protection is a kind of long-term insurance policy that ensures that you get a regular payment as long as you retire or are able to get to work. For those who are not well-versed with it, this blog is a must-read. Here you will find information as to what it entails when you should buy one, and how you can.
With income protection insurance, you will be able to get a regular inflow of money in exchange for the time you cannot work due to an accident or illness. It will offer such payments either until you can work again, till your retire, or reach the end of the policy. Whichever is sooner is considered the end of the payment plan.
It usually pays out about 50% to 60% of your original payslip, depending on the kind of policy you have. The good thing about such a policy is that it covers all short-term and long-term illnesses that leave you unable to work. However, such terms also depend on the type of policy you get and its definition of inability.
You can also claim this policy as many times as you might require as long as the policy lasts. However, it is important to know that there is a pre-agreed waiting time before any payment gets imbursed. The usual waiting times can vary, the most common ones being from 4 weeks to a year.
The longer you have to wait, the lesser your monthly premiums will be. This is what makes it different from Critical Illness Insurance, which will pay out a lump-sum amount at once.
An income protection insurance claim is justified if a severe illness or accident is the root cause of your inability to work. While most employees assume their employers give them a certain level of income. However, in reality, the employees are moved to Statutory Sick Pay in about six months.
There are only a handful of employers and big-name brands that offer their staff for more than a year, even when they are on sick leave. This is why it is important that you check what your employers are ready to offer before making your claim.
Irrespective of that, with lower income but the same level of necessary expense, it can be quite hard for some to maintain a basic standard of living. For such individuals, income protection insurance offers a helping hand.
Now that you know what income protection insurance is and when you might need it, it is time you understand how you buy one. Premiums for this kind of insurance can vary quite a bit depending on the insurers and the criteria they use.
This is why it is best you do a bit of research. Seeking help from a specialist broker or financial adviser can surely help. They will take you through all the necessary details and different kinds of policies available to ensure you know them.
With these tips, you can rest assured that you will find the best policies and get the right help when needed. If you are having trouble selecting the right policies, you can always rely on services like Life Matters Claims to help assist and guide you throughout the whole process.
