Mar 25 2010
Get Help And Advice About Income Protection
It does not matter whether you are single, have a family or live alone; you need money to buy all the supplies of life and kepp your head above water and pay the bills. If you die, your family has life insurance to cover those expenses, but what happens if you have a disability that prevents you from working? A good Financial advisor can help you find the answer to that question.
Single individuals have no one else to count upon to help bring in an income. Families often need both incomes and unlike death, your personal expenses continue to grow substantially if you no longer can work. However, if you have some form of Income Protection you can forestall a financial collapse at a time when you already have enough stress in your life.
Income Protection insurance helps replace some or all of the income you lose when you are ill or disabled. You could be in the best of health and have a freak accident that could wipe out all the hard work it took to accumulate what you have or put you in a financial bind. Income Protection provides a paycheck for you when you cannot go to work.
There are several different types of policies you can choose from and each of these policies has different options from which to choose. Each of the policies has a deferred period. The delayed period is the length of time before the policy begins to pay if you have a disability claim.The longer the deferred period is, the more inexpensive the premium is for the policy. deferred period ranges from a minimum of eight weeks all the way to a year.
You choose the amount of monthly payment you would like in the event of a disability up to a limit based on your income. It might be important that you choose to look after your mortgage. If that is the case, you select that amount for your insurance benefit.
Some Income Protection policies have a guarantee that no matter what your health is, they will not change the premium for the policy. If you have an illness after you take out the policy and file a claim but manage to go back to work. The company never can raise your rate.
Other advantages in some policies include the guarantee of insurability if your income increases and you want more insurance. Most people increase their income the longer they work in a particular position. Even if they do not receive promotions, often inflation warrants that increase. With this type of benefit, you can increase your coverage as much as 20 percent every three years until you reach a limit of 100 percent of the original amount.
Some plans even help you after you return to work. Insurance companies know that it often takes a few months to return to full income if you were ill or disabled for at least a year. In order to help you go back to your previous income, some companies offer partial payments even after you return to work to help you through that hurdle..
Several companies offer Income Protection policies and each company has several plans. You also need to select the length of time for the delayed period, amount of payments and length of coverage. While it all may sound very confusing, with the help of a Financial Advisor who can give you astute financial advice you can find the best income protection policy to fit your needs and your pocketbook.
