What is a personal income protection And How does It work?
A personal income protection is the type that provides you with peace of mind. Thus, you are sure to be in safe hands in the event of any issues. This way, you can even cater for your family when you’re down with some illness or injury. It also includes times when you have a limited work capacity or when you are temporarily or permanently disabled.
You are provided with a recovery benefit which relieves your headache. You get a compensation of 75% of your gross monthly earnings. Thus, you are covered inside and outside of work. The best part is, you can be anywhere in the world. it also extends to superannuation. This protection comes into action when there is need for you to cover cost as a result of your illness or injury. The following are some indirect or direct cause of incidences that forces you out of work:
- Rehabilitation costs.
- Career costs.
- Travel aid.
- Business cover.
- Debt and credit.
- Education fees.
Why should I get income protection?
One thing we all strive to avoid is financial stress. Many people who don’t have this policy are likely to suffer financially. This is because when instances like this happens, they may end up spending all of their money. Thus, they may be unable to pay for a lot of domestic bills. Also, in the instance where it is recurrent, they may end up losing a lot of cash and running in debts. Although, this insurance does not pay all your costs, it covers up to 75% while you’re off work. Thus, it is important to tap into it.
You may ask a question. Why should I create a safety net for future health and medical issues? The answer is simple, you cannot predict happenings of the future and it is better to be ready for it. In the instance where you do not do this, you’re likely to lose a lot of cash and your family may suffer for it.
Will personal income protection cover redundant employees?
The answer is No. The policy does not cover employees who have been made redundant. However, certain policies offer additional options that can help if you are in such a situation. This is regarded as the Premium Waiver for Involuntary Unemployment feature. You can purchase it along with the personal income protection policy when signing up for it.
What factors influence the cost of my personal income protection policies?
There is a wide range of factors. This is what insurers will evaluate when devising a policy for your needs. They include:
- Current Health conditions
- Pre-existing medical condition
- Lifestyle choices
Depending on these facts, the insurers will then bring out which premium will work for you. For instance, a sportsman is likely to have his premium skyrocket. This is because of the level at which he/she may have injuries.
These and many more are a few things you need to know about this form of protection. Have it in mind therefore, that it is necessary to plan for the future. Certain instances may leave you unable to pay bills or get food on the table for your family. However, this covers your cost lending the time you heal. Thus, do not take it for granted. Also, there is a lot to choose from. However, it is important to have an insurance manager who will help you pick the right one.