Thursday, May 23rd, 2013
Maximum Payment

Income protection plans are not mandatory but when purchased, these plans  ( ) can ensure that the bread winner of the family gets up to 75% of his annual pre-tax gross income towards compensation payouts. Insurers in Australia offer these payouts in the form of monthly payments while the benefit period of the cover is active. Buyers are always advised to opt for the maximum compensation limit if they have dependants such as elderly parents or young children.

Maximum Basic Benefits

The best covers that cost a few dollars more than basic, standard covers often provide buyers with maximum basic benefits such as a death benefit, transplant surgery benefit and cosmetic surgery benefit. Other benefits that may be offered complimentary or within the cost of the cover include a rehabilitation benefit and an accommodation benefit.

Important Add on Benefits

To fight inflation, insurers offer the indexation benefit which ensures that the value of the policy and the given benefits increase according to the CPI index. This benefit ensures that your policy’s value increases every year as per the inflation showed by the CPI index. Another important add on benefit that is offered with income plans is the day one accident benefit that makes sure you get a compensation payment if you are injured while the waiting period of the plan is active. The compensation payment will be given when the waiting period is over.

Add On Plans

Total Permanent Disability Insurance ( ), Term Life Insurance ( ) and Trauma insurance are three of the add on plans that can be purchased with income protection covers. Each of these plans offers a compensation payment in a particular scenario either to the policy holder or to his beneficiaries. Opting for any one of these plans can make you eligible for added discounts and added benefits. Income Covers do not offer tax benefits when combined with TPD plans and Trauma Insurance plans. ( )

Few Exclusions

Your plan should have minimum number of exclusions and to ensure that your plan is suitable for you always read the product disclosure statement along with the policy wordings before you agree to any terms from income insurers. The plan should preferably not contain exclusions unless you have agreed to these terms to lower your premiums. It should be noted that every insurer has a set number of standard exclusions for all plans and insurers also offer exclusions to lower premiums if they feel that the policy holder is a high risk buyer.

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Lifedeal - Australian life insurance and income protection quotes online.
Dmitriy Ivanov
P: 1300 60 70 90


Income protection, life insurance, trauma insurance, tpd, disability insurance



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