Be Stress-Free With Income Protection Insurance
We live in a world where uncertainties can happen anytime, which explains why many people spend a significant part of these lives worrying about their future. This is one reason why insurance plans were made so that it could help people live a quality lifestyle without worrying about financial matters. Income Protection Insurance is considered to be one of the better insurance options simply because this type of insurance, gives people that sense of security to enable them to exist happily and without constantly worrying about what can happen when they suddenly face injury or illness and cannot go to work to make money.
There are three essential components of an income protection insurance. The first component is the insured amount. People who are interested in getting new policies are offered the option to insure up to 75% of their yearly gross income. If eligible, buyers may be given the option to insure their income for an additional 9%.
The second component is the waiting period. The waiting period is a set number of days or weeks buyers have to wait to get the first compensation payment. Good plans allow policy holders to choose the number of days they want to wait where as basic plans require buyers to wait for a certain number of days.
The third compenent is the benefit period. The benefit period is the set number of months or years, policy holders can enjoy the benefits offered. The benefit period should not be confused with the tenure of the plan since the benefit period is shorter than the tenure of the policy. The benefit period starts when the buyer claims compensation where as the term of the plan starts when the buyer buys the selected policy.
These three components can be customized to suit any individual's needs. Other components of these plans include the type of agreement and the tenure of the plan. Buyers can opt to select between short term and long term income insurance contracts. Buyers can also choose if they want to pay one fixed premium every month or if they want to pay in variable amounts. The basic benefit offered to all buyers are the monthly compensation payments after an income protection claim is processed and approved. Additional benefits being offered include a death benefit and an operation or surgery benefits. Some insurers offer both the perks and additional perks such as day one claim benefit for no extra fee.
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For more information about income protection insurance, visit http://incomeprotectionguide.com.au/
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