How Much Compensation Can I Get?
Income protection insurance plans pay a timely compensation payment if you are unable to go to work for a while. The amount you receive will usually be equal to or less than 75% of your annual salary. Depending on the type of contract you select you may either be eligible to receive a variable or pre-decided compensation payment.
Whats happens after you apply for income protection
Income protection insurance quote provided by our partners NobleOak Ltd. The company has been established in 1877 and their products are backed by a top 3 global reinsurer for extra security. After you submit the information the insurance consultant call you and guide through the whole income protection insurance process ( please make sure you left correct phone number ). Alternately you may call and start the application over the phone.
Why Income Protection Insurance?
Income protection insurance is often confused with mortgage insurance however; these two types of insurance plans are completely different. Income insurance plans will ensure that you and your family are given a monthly compensation payment by the selected insurer if you are unable to work for a few weeks or a few months. Income protection plans protect both you and the investment property owner by ensuring that you get benefits in the form of monthly compensation payments if you cannot earn a steady income as you were earning before. Mortgage insurance on the other hand is required by many lenders when the loan value exceeds more than a set percentage of the purchased property’s value. Mortgage insurance protects the lender in case you happen to default on the loan.
How Much Will I Have to Pay Towards Premiums?
Before choosing an income protection insurance plan you should understand what factors affect the premiums you will pay to the insurer. Your health, your age, your declared income, your gender and your occupation are only a few of the factors that will determine how much you pay. The waiting period and the benefit period of the policy are two important factors that will not only determine how much you pay but also when you will receive the benefits. The waiting period or the deferment period is the minimum number of weeks you have to wait before you receive the first payment from the insurer. Choosing a longer waiting period can help reduce your premiums up to an extent. The benefit period is the maximum number of years you can enjoy the benefits offered by the insurer and this period ranges from 2 years – 5 years or until you are either 60 – 65 years old. Choosing a longer benefit period will increase your premiums but also increase the number of years you can enjoy the benefits if you need to file a claim.
What Other Things Should I Keep in Mind?
Annual income protection premiums are usually in between one – three percent of your total annual income. Since these are directly related to your earnings the premiums are tax deductible. When calculating how much you are earning every year you should keep in mind other earnings such as fringe benefits along with overtime so that your financial advisor or insurance agent can help you find a policy that meets your needs and suits your budget.