Sometimes it is difficult to tell whether you’re getting value for your money or not while purchasing an online income protection quote. The cheapest policy is not necessarily the best income protection insurance online and might not provide you with the level of protection you need. Also, one size doesn’t fit all and the best policy for someone might not be the best option for you. There are few things you need to be aware of before getting an income protection insurance.
1. Do you need income protection insurance?
At some point in your life, the question of getting income protection insurance might have crossed your mind. We all know most of all income protection insurance cover around 75% of our salary and helps us financially in our bad days. It can be the best backup plan for unforeseen circumstances. But do you really need income protection?
In everyone’s life, the only thing people want to avoid is financial stress. Who knows what surprise might be waiting for us in the future. Illness and injuries can’t be avoided. It’s like an uninvited guest, whether you like or not they can come to visit you at any moment.
Unless you have enough savings or can survive on governmental benefits, you may consider getting income protection. But it’s better to apply for an income protection quote and have income protection insurance rather than not being able to pay the bills or maintain a living standard.
2. Some exceptions of income protection insurance
Did you know there are certain criteria which income insurance policy doesn’t cover the claim?
- Losing your job for non-medical reasons:
If you lose your job due to non-medical reasons your insurance will not allow to claim income protection. It only covers illness and injuries that prevent you from doing your job.
- Pre-existing medical conditions:
You may not be covered for an illness you or your family has had before. It depends on the company’s policy, some of them cover existing medical condition, but some others don’t. The insurer will let you know.
- Involved in any criminal activities or illegal acts:
If you are involved in any sorts of unlawful activities, better don’t bother getting an income protection insurance. Because once your illicit activities are known, your policy will be terminated with no refund.
- Misuse of alcohol or drugs
The policy won’t cover any injuries caused due to misuse of drugs and alcohol. Its and self-inflicted act, and you can’t blame the company for not accepting your claim.
3. Cost of income protection insurance can vary
The monthly premium cost of income protection insurance can vary due to some factors
- Risky job
If you are involved in high-risk jobs like working in height, heavy machinery, or any job that exposes to disease or danger. You are most likely to pay more monthly premiums.
- Waiting period
Every income protection insurance company offers multiple waiting period options. And it comes with a cost. If you choose a shorter waiting period, you will be paying more compared to longer waiting period.
- Health conditions
As mention above, there is some exception related to the pre-medical state. But some company covers such circumstances if you are willing to pay more.
There are many other factors like age, sex, lifestyle, etc which can affect your insurance policy.
4. Cancellation policy
By any chance, if you feel like the insurance policy is not worth your money. You can terminate it within 30 days or as per the company policy. Cancelling the insurance after 30 days can result in less refund of money. So, you must choose your insurance policy and company wisely
About the Author
Christian Taylor, is an assistant insurance agent at Aspect Underwriting- a boutique insurance agency in Melbourne that provides a wide range of insurance brokering and cover services including online Accident, Health, Trauma, and Income Protection quotes. Reach out to him at email@example.com to discuss your insurance needs.