A basic guide with facts that can help you compare income protection insurance.
Income protection insurance is designed to help provide funds for you and your family in case you are unable to work for an extended period of time. Illness or injury can create a lot of unanticipated expenses, compounded by the fact that you are unable to produce income. You may have to take part in expensive rehabilitation and even reformat your home to make allowances.
Your spouse may have to take time off work to assist you in your recovery or you may have to hire a full time nurse. In addition, your daily household expenses are still there, such as groceries, utility bills, mortgage repayments and car loan repayments. With no income, this could be crippling to your finances. Luckily, protection is available in the form of income protection insurance.
The Elements of Income Protection Insurance
To compare income protection insurance policies, you need to know some basic facts. There are two main points that you will compare: the amount or percentage of your income that you will want to receive if you are unable to work for an extended period of time and the length of time you would like to receive it.
In most cases, the more and longer your compensation, the higher your premium. A majority of policies are written for 75% of current income with compensation periods lasting from two to five years. Some policies also allow the insured to receive benefits until the age of 65 if necessary. No two situations are alike, so you should contact one of our insurance professionals or financial planners in Perth for an individual consult.
What to Look For
When comparing income protection insurance policies, it is wise to take your individual needs into consideration. While we will be happy to help you figure them out, it is also helpful if you have given it some thought before you consult.
Call Approved Financial Planners
Call Approved Financial Planners today if you would like to compare income protection insurance policies. 08 6462 0888.