Why Purchase Income Protection Insurance Plans Online?
- Income covers can be purchased via the phone, online or by walking into the office of an insurer. Purchasing policies online offers a list of benefits that the other two options do not offer. For instance, purchasing income covers online works out cheaper especially if the buyer chooses a reputed insurance agent’s website that offers a promotional deal. As a general rule, insurance agents tend to charge a few dollars lesser towards premiums than insurers by offering deals, discounts and offers.
- Buyers can also read frequently asked questions, terms and conditions of the plan and compare plans online before committing to purchase any selected plan. By doing these few things you can not only make an educated choice but you can also ensure that you save a significant amount while purchasing one or more insurance plans.
- Purchasing a plan online also implies that you do not have to spend money or time travelling to purchase an insurance plan since these covers can be bought online from any computer and at times mobile phones or smart phones as well. Basic computer knowledge along with a stable internet connection, are the two requirements of purchasing covers online.
How to Compare Income Protection Insurance Plans Online?
- To compare the benefits offered, the buyer should look for the maximum compensation amount offered by the selected policies. While it is beneficial to purchase a policy with maximum benefits, if you are on a budget then your main aim should be to find a plan with the benefits you require such as rehabilitation costs benefits or day one claim benefit. The benefits you require will depend on two things which are your personal needs and financial constraints.
- The waiting period and benefit period are important terms which are often overlooked. While comparing plans, the buyer should aim to find a policy with a short or reasonable waiting period. The buyer should also aim to find a policy with a long benefit period and long term. Buyers may be able to alter the benefit period and waiting period but will most likely have to incur a charge if they want to better the policy. However; increasing the waiting period or reducing the benefit period can reduce the cost of the policy.
- While selecting a contract, buyers will notice that there are two different types of contracts offered under the income cover bracket. The first type of contract is known as the indemnity contract while the second type of contract is known as the agreed value contract. The basic difference between these two types of contracts is that the former is cheaper than the latter since the former has 1 limitation. Indemnity contracts pay out a variable amount based on the income of the policy holder at the time of filing the claim; not based on the income of the policy holder at the time of purchasing the contract. This can cause a problem for self-employed people and small business owners since they may earn variable amounts and their income may decline for a few months every year. Indemnity contracts are suited only for those individuals who get a fixed package from their employees and for people on a strict budget. The description mentioned on the insurance agent’s website will elaborate on which type of contract is offered and the terms of that particular contract.
- The price of the policy will be determined based on the cover limit, the chosen benefits, the type of contract, the agreed benefit and waiting period, the buyer’s age, gender, health status, smoking status and a few other factors. Men will be offered policies for a higher cost than women of a similar age and smokers will be offered policies for a higher cost than non-smokers. In addition, some blue collar employees, people with pre-existing health conditions and people who play sports or indulge in risky behaviour will be offered policies with slightly higher premiums.
- While comparing the price of the cover, the buyer should keep in mind that some insurers offer similar policies for cheaper rates but have exclusions, premium loading fees and other limitations included in the policy. To ensure that you get what you pay for without having to pay any additional fees later on, read the fine print and ask the insurance agent questions before you purchasing the policy.
- Most insurance agents offer online help and telephonic help to buyers who have questions regarding the selected plans. To get assistance buyers have to visit the insurance agent’s website, click on the email us option or chat now option. Emails may be answered in 1-2 working days however questions asked on real time chat is often answered in a few minutes. The facility of real time chat is offered on the websites of a few selected insurance agents and this option is usually available during standard working hours.
Three Important Facts about Income Protection Insurance Plans
- There are many income covers available in Australia and buyers can choose which plans they want by comparing a few important things such as the benefits of the plans. The basic benefit offered to buyers includes a maximum of 75% compensation based on their annual pre-tax income. Some insurers may offer an additional 8-9% compensation payment every month provided the buyer’s employer offers this perk as part of the annual salary package.
- Additional benefits that can be expected in flexible, comprehensive and premium plans include a death benefit, day one claim benefit, cheap add on plans and transplant surgery benefit. Accommodation benefits along with rehabilitation benefits and a list of many more benefits are offered by many insurers. While some of these perks are complimentary, others have to be paid for.
- Income covers mainly protect the policy holder against loss of income if he or she suffers due to health problems such as but not limited to injury or illness. This type of cover does not protect the policy holder against loss of job due to any reason such as but not limited to recession, cutting costs by the company or malpractice at work.