Understanding Income Protection Insurance

http://incomeinsuranceaustralia.com.au/ Visit this link for more information. Income Protection Insurance (IPI) is an income insurance policy that pays policyholders a fixed amount of money either weekly or monthly if they are unable to work due to illness or accidents. Otherwise known as salary continuance insurance, this type of insurance can pay up to 75% of the gross annual income of the policyholder in the event that the policyholder is unable to work due to illness or injury. Usually, a good policy pays out after 30 days that a policyholder is unable to work and will continue to pay out until the policyholder is able to return to work or until the cut-off age of 65. Importance of Income Protection Insurance In this current economic climate, amongst the best insurance policies to get is income insurance for it provides a number of benefits in comparison to other insurance policies such as: 1. Peace of mind for it will provide financial security in the event of unforeseen circumstances such as unemployment due to illness or injuries 2. Payments of benefits are paid regularly either weekly or monthly 3. Payments of benefits are payable in times after the policyholder is unable to work and will continue until the policy holder returns to work or until retirement or the term of the contract ends 4. The monthly or weekly benefit payments paid from the policy to policyholders are free of income tax and National Insurance contributions 5. Insurance company does not have the authority to cancel or refuse to renew the policy provided that the policyholder continues to pay the premiums 6. May provide a waiver of premium option whereby IPI policy premiums are not required while the policy is paying benefits, but the policy cover continues as normal 7. Provides additional benefits that are usually offered for no cost that includes death benefits, cosmetic, or other surgery benefits and transplant benefits Income insurance provides the needed financial security and peace of mind that you and your family need should you become disabled and unable to earn an income.