Many people obtain insurance to keep themselves protected. The protection provides financial assistance in the case of something happening to that person. Unfortunately, many people are underinsured across the world, subjecting themselves to possible financial harm.
One of the best ways to keep yourself safely covered by insurance is through obtaining income protection insurance. We’ll focus on what the cheapest price can be for obtaining this type of insurance.
Defining Income Protection Insurance
Insurance can help cover a person financially if they are adversely affected by an event. There’s auto insurance, disability insurance, life insurance, medical insurance, and even homeowner’s insurance. If you’re in a car accident, depending on what coverage you have, damages to your car will be taken care of. In the unfortunate circumstance that you pass away, life insurance will be able to help take care of your funeral expenses. Another piece of insurance that you can include in your insurance arsenal is income protection insurance.
Income protection insurance is a type of insurance that will pay up to 70% of your pretax income for a set period. This occurs if you’re unable to work because of a partial or total disability. It also depends on the type of income protection insurance policy you have. This form of disability income insurance can come in handy for all households. It can especially help those households where the monthly salary of a disabled worker is the primary source of income.
It’s a good idea to find an Australian company that offers cheap income protection insurance. This will help you to save money on a few fronts as you seek out the best insurance for your financial security. This type of insurance is the best way to maintain your income protection, whether you need long-term disability or short-term disability.
Costs of Income Protection Insurance
When trying to locate the best insurance, you’re going to want something that won’t cost an arm and a leg. You’ll want insurance from an insurance company in Australia that will help maintain your income protection. When attempting to determine the costs of this form of disability insurance, what you’ll pay will be determined by a few factors. Some of these factors will include your age, income, occupation, and lifestyle. Insurance companies will also factor in whether you’re a smoker or not when determining the cost of your income protection insurance.
In Australia, policy premiums will differ between different insurers. There’s really no way to determine what price is cheap when it comes to income protection insurance because it varies case by case. The pricing of your insurance premiums can also be changed due to adding other optional extras. Some of these extras would include death benefits, disablement benefits, and business expenses. Only after speaking with a financial advisor at an insurance company will you be able to determine the exact cost of income protection insurance.
Coverage & Waiting Periods
Tied into the costs of your income protection insurance are the various coverages that you’ll receive. Determining what you’ll be able to afford with your income protection insurance will help you to settle on what coverages you’ll need. The biggest part of what you’re covered for includes the replacement of 70% of your income lost because of your inability to work. Various illnesses and injuries are covered under this form of insurance.
In Australia, your waiting period to receive such compensation is often 30 to 90 days. This waiting period is the period that must pass before you can make a claim. You also must be incapacitated for the entire waiting period because of your injury or illness. Be sure to check with your insurance company and the Australian Securities & Investment Commission to confirm exactly what your coverages and the waiting period will be.