Some Guidelines On Income Protection Policy

2007-03-08 10:33:40

( Financial )



An income protection policy provides you income when you become unfit to work due to an illness or accident. Income protection plans are made available to both self employed and employed individuals. Income protection plans ca be obtained to match your individual needs. There are a number of plans available that allow you to receive a certain amount monthly based on your current wages. You can even specify the exact time period when you would like to start receiving the compensation.

An income protection policy provides hospital coverage. You need to be hospitalized for a certain number of days in order to avail of the coverage. Additionally, there is a maximum confinement period for which coverage will be given.

Premiums are normally waived once the payment of benefits start. If partial wages are paid to you, an income protection policy will cover the remaining balance of the wages you normally receive monthly. There is no limit to the number of times you can make a claim for income protection. The coverage will protect you until such a time that you are able to return to work; but a maximum amount of time applies. Income protection plans give you the opportunity to upgrade your plan when you are able to afford it.

Some income protection plans also provide your loved ones a certain lump sum amount in the event you encounter an accident, which leads to death.

Income protection plans can cover you for incapacity, unemployment, or both.

Anyone who is of a certain age, works a certain number of hours weekly and has been employed for a certain time frame is eligible to apply for an income protection policy. Individuals who are about to become unemployed, or are only employed on a temporarily basis are not eligible for income protection plans. You are also not eligible if you have a recurring history of losing your job, or are unemployed because of an incapacity.

Certain limitations apply for unemployment coverage. If you are a contract worker, you must be employed for a certain time frame before you become eligible for benefits. You will not receive any benefits if you are suffering from a chronic condition, you have pregnancy related illnesses.

If you wish to obtain an income protection policy, you should make an appointment with an insurance broker to discuss your options. The insurance broker will most likely provide you with more information on these policies.


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