Income Protection Insurance
Adequate income protection insurance to cover your income producing ability
is a type of cover that is really needed today to give peace of mind. Life insurance
was originally conceived to protect a man's family when his death left them
without income. Over time this has developed into a variety of policy plans. In
a "whole life" policy, fixed premiums are paid throughout the insured's
lifetime. With "term life" a payout is paid to a
beneficiary in a lump sum upon the insured’s death; the benefit is paid even if
the insured had terminated the policy.
Income protection insurance is well worth considering for every person that has
permanent employment. This type of insurance may pay a proportion of your wage
if you are unable to work for a short period of time because of any sickness or
injury incurred.
Even for young people with no dependents and no need for term life insurance,
these products could be the right choice. They are designed for when it’s more
important to meet the costs of ‘living’ than ensuring family members receive a
payout after your death.
What is the best level of insurance?
The amount of time you receive payments depends
on the contract term; for example two years, five years, or up to age 60 or 65;
it varies depending upon the amount of cover you are willing to pay for.
Generally income protection provides cover for about 75% of your salary in the
event of illness or injury preventing you from working.
You need to consider what the costs are of meeting a mortgage and other debts;
providing for a spouse, children or other dependents; and maintaining your
assets and investments. Remember the point of income protection insurance is to
provide an income stream if you can no longer work.
How are premiums set?
Premiums are set depending on:
1. Your Age ;
2. Your Gender;
3. Your Health and pre-existing conditions;
4. Being a Smoker or Non-smoker;
5. Your Occupation, and
6. The time you choose to wait before receiving payment. Prices vary
depending on age and other factors, but income protection can cost around one
week’s salary per year (premiums are generally tax deductible). B and B
Insurance Services have professional expertise in this area and they are able to
research the marketplace analyse, firstly the quality of cover available, and
secondly the cost.
This service is freely available to their clients who have or are intending to
purchase Life Insurance and Income Protection Insurance Policies.
Competition in the insurance industry has meant improvements in benefits
available to some consumers in that they have increased, and also premiums in
many cases have been reduced.
Their process also considers the underwriting and claims experience of
particular underwriters. This is evaluated in conjunction with the benefits and
premium analysis. Income Protection offers protection for your income. The
purpose of this insurance is to provide you with the most benefit in the event
of disablement through sickness and injury.
We recommend
Band B Insurance Services for these types of
product.
You can click this link
Income Protection to go
their site, or give Bill Carpenter a call on (02) 4729 0055 or Mobile :
0411 195 827
Band B Insurance Services are located at 25 Knot Street, Cranebrook NSW
Australia 2749. |
