Top Points With Regard To Income Protection Cover

With the economy being as it is, income protection cover may be important and if the economy is less robust, it may be even more so.


Here are some of the top points to contemplate about:


• income protection cover typically comes in two forms:


o short-term cover (perhaps providing cover for a duration of typically up to 12-18 months);


o long-term cover (for lengthier periods, as specified by your policy).


• you may find that typically, short-term cover offers a monthly income (the sum depends upon the policy you select and pay for) in the event you are unable to obtain income due to sickness, redundancy or an accident – it may also be possible to obtain cover for unemployment alone;


• longer-term cover typically exists to defend against more serious illnesses or accidents that may prevent you from earning an income over the long term – note that this form of income protection may not typically cover unemployment for reasons of redundancy;


• unemployment conditions will relate to an involuntary loss of income (typically involuntary redundancy), so if you resigned, take a career break/gap year, are dismissed for certain reasons or are pregnant, your insurance may not cover you;


• unemployment is not typically viewed as to be the same thing as absence from the office due to illness or accident etc – if you are receiving a salary from your employer on the basis of sickness absence, you will not be eligible to claim;


• a policy typically includes any claims that come about due to an existing medical condition you may have had when you took out the insurance policy. Therefore it is essential that you tell of any medical conditions at the time of taking out the insurance.;


• if you are claiming against an income protection cover insurance policy for redundancy, the insurer may obviously ask you to periodically provide evidence that you are making sincere efforts to find alternative employment;


• If you make a successful claim you generally receive a payment each month and are able to spend the money on whatever you want;


• some policies may feature the requirement that you have held the policy for a minimum period of time prior to being able to lodge a claim;


• you may find that some cover links the maximum payout available to your maximum earning levels in your job (as a percentage);


• although income protection cover is important, it is part of a wide range of options that you may wish to consider, including things such as life insurance and critical illness insurance.

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