Thursday, October 4th, 2012
The Main Benefit of Income Insurance Plans

Income protection plans ( ) are meant for individuals who either work for a company or have their own business. The purpose of income insurance plans is to ensure financial stability of the professional and his family when he is unable to work as normal due to health reasons. While income insurance plans are necessary for all professionals irrespective of their field of work, these plans are considered as a must for professionals with fluctuating salaries. People with fluctuating salaries often worry more than people with fixed salaries especially when they fall ill. Income protection plans can give peace of mind to both the policy holder and his family.

Additional Perks of Income Insurance

Additional perks are usually provided with many policies and some of the additional perks that policy holders can expect include a death benefit, cheap add on covers and rehabilitation benefits. Accommodation benefits along with a wide range of additional perks may be offered to policy holders who opt for premium income insurance contracts.

Selecting The Right Insurance Amount is Important

Most insurers that offer indemnity and agreed value contracts offer a maximum of 75% of the policy holder’s annual income towards monthly compensation payments. These compensation payments are provided when a claim is filed and approved by the insurer. People who earn a variable amount every year should aim to get a contract that offers maximum compensation payments and maximum additional perks.

Important Information Buyers Must Know About Waiting Periods and Add On Covers

Opting for an additional policy such as a total and permanent disability cover or a critical illness cover can also be beneficial for the policy holder and his family. Policy holders and potential buyers should remember that all insurers have a waiting period that requires the policy holder to wait for a few days before enjoying the benefits offered. This waiting period can be as less as 2 weeks or can be as much as 2 years.
( ) The policy holder will be given an option to choose a waiting period provided he chooses a flexible contract. Before choosing an add on cover remember to check the tax implications of purchasing an add on cover with an income protection plan since at times opting for an add on plan can make you ineligible to get tax benefits.

The Ideal Income Insurance Plan for Professionals with Fluctuating Salaries

People who earn variable amounts of income every year are most likely to benefit by purchasing an indemnity contract from a reliable income protection insurer. An indemnity contract is not only cheaper than an agreed value contract but is also more beneficial for people with variable salaries. Agreed value contracts are ideal for those professionals who earn a steady amount and want a fixed compensation amount when they file an insurance claim. Indemnity plans require the policy holder to submit proof of income along with other documents only at the time of filing the compensation claim. Agreed value contracts on the other hand require the policy holder to give the insurer the required documents while taking out the contract.

Contact Profile

IncomeProtectionInsurance AU

IncomeProtectionInsuranceAU - Australian income protection insurance quotes online
Dmitriy Ivanov
P: 1300 60 70 90


income protection, income protection insurance, life insurance, income insurance



More Formats

View QR Code