All You Need To Know About Income Protection Cover
Imagine your plight if you lose your job without any fault of your own. It may be due to an accident or an illness that was uncalled for. Well, here’s an insurance policy that will save your skin in such a situation.
Income protection cover comes to your rescue if you are suddenly unable to work due to an accident or sickness. It pays you regular weekly or monthly cover and financial assistance. This comes into effect if you lose your job without any fault of your own. With an Income Protection Insurance you won’t be required to pay any rents, loans, or mortgages and not disclose any outgoings.
Income protection cover significantly saves your monthly deductions – nearly 50% of your gross income. This cover provides you a weekly or monthly income that helps you meet your expenses. You can use the entire amount however you want to. This is a useful policy if you lose your sources of income without any fault of your own.
This policy is also known to be a standalone protection and covers the income loss during unemployment, redundancy, sickness, and accident. If your monthly income suddenly stops due to an unfortunate accident or no fault of your own, then a good protection cover removes the unexpected financial crisis.
Income protection cover is a short-term policy, and insurers pay the policy holders by 12 months. By this time, you have decent amount of time to get back into employment and easily meet your financial obligations in the mean time. There are some variations in this insurance policy, like reviewable IPI, renewable IPI, unit linked IPI, increasing IPI, and group IPI.
However, on the low side, IPI policies are expensive as the agencies offer guarantees. These premiums decrease with the increase in the deferred period. If you own a company and pay premiums for your employees, these premiums will be considered as business expenses and are tax deductible. All the benefits provided by the company to its employees under this policy are tax free and are considered as National Insurance policies.
The different types of conditions under which you can avail the benefits are suited occupation, own occupation, activities of daily living, and any occupation. The amount sums up to nearly 70% of a person’s gross monthly earnings. Deferred period extends between the date at which the valid claim is made and the date of commencement of payments.
Get more information on: Income Protection Cover
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