When the New Year rolls around many of us think about what we’d like to improve in our lives. At this time, our financial health should be a major consideration. For many people this means improving their credit rating, paying off store accounts or credit cards, or saving for a new car or home. But, this is also a good time to consider protecting your assets and financial stability and security.
None of us like to think about what could possibly go wrong in our life, but we may get sick, have an accident or not be able to provide for our family due to loss of work. So instead of worrying about how you’ll cope financially should anything happen to compromise your earning capacity, now may be the right time to make protecting your income and your family a reality.
Income protection covers you and your family’s bills and other costs should you no longer be able to work due to injury or illness. This allows you to maintain your living expenses and reduces your stress levels as you recover. In most instances, income protection will cover you for up to 75 percent, or possibly more, of your normal income until you are able to work again or your policy will specify a duration, such as 2-years etc.
Income protection policies can vary greatly depending on the type of policy you have, your insurer and the type of work you do. However, it is possible to tailor an income protection policy to your needs. Some of the options you’ll encounter are as follows:
Waiting Period – This is the time that needs to pass before you can make a claim. Some policy’s have a minimum of 3 to 6 months, while others can be longer.
Policy Duration – How long the payments will continue for when you make a claim. Your policy can be for as long as you are ill or for a set period.
Policy Type – There are two types of policies, an indemnity value or agreed value. An indemnity value is the value that you say you earn. When you make a claim you will be asked to supply proof of income. Whereas, an agreed value is the value that you agree to. You’ll need to supply proof of income when you apply for this type of income protection and you may find that your premiums are higher than an indemnity value policy.
Additional Benefits – Some policy’s include hospital and accident benefits, nursing care and other forms of support.
Typically the cost of your policy will increase with your age, your state of health and the risk associated with your occupation. If you are a smoker, this may also increase the cost of your policy.
Do you want to find out how much income protection will cost you? If so, then contact eChoice and find the right policy for YOU today.
Tags: Home Buying