Income Protection Plan - Are You Qualified?
The policy known as income protection is fast gaining ground, and industry watchers say it is about the fastest growing niche in the insurance sector.
With this at the back of your mind, you must be able to go for the option you believe is the best for you when an insurance salesman come knocking at your door.
Before you purchase any income protection policy, it is important to first evaluate your financial circumstance, as doing this will later help you identify the policies you don't need from the options given to you by an insurance salesman.
And in taking a look at the policy proper, you should seek to understand what its definition of disability is and how it will affect you and your family.
The back pages of information booklets are where policy definitions are usually kept, so make sure you go through this carefully.
The next thing you should endeavor to find out in an income protection policy is the monthly benefit amount as well as the manner this will be paid every month.
The general trend is that income protection policies replace 50 to 60 percent of an individual's monthly salary.
But these figures vary from company to company.
One other area that should be carefully perused is the benefit period.
This mean the entire duration that payments will be made in case you are incapacitated by illness or injuries.
In most cases, time or age limits are often stipulated with policies, so find out what these are.
With these done with, you should now go on to evaluate your total savings and liquid capital against your projected monthly expenditures, not forgetting to deduct any work related expenditure that will not occur during an absence.
If your calculations show that your liquid assets will not cover your expenditures for an extended period of time, then it is time to start considering an investment in an income protection policy.
According to statistics from the U.
S Department of Commerce, more and more American are living from pay check to pay check, and a reputable insurance consulting and research organization called JHA also reports that the probability of individuals to suffer serious illness or injury that will require disability insurance is three and a half times than they are to die and need life insurance.
These facts are nothing but a reminder of what would happen if a tragedy should strike.
Therefore, it is important to lay out every factor outlined above in plain view, as this is the best way to help you determine accurately whether you need income protection or not.
With this at the back of your mind, you must be able to go for the option you believe is the best for you when an insurance salesman come knocking at your door.
Before you purchase any income protection policy, it is important to first evaluate your financial circumstance, as doing this will later help you identify the policies you don't need from the options given to you by an insurance salesman.
And in taking a look at the policy proper, you should seek to understand what its definition of disability is and how it will affect you and your family.
The back pages of information booklets are where policy definitions are usually kept, so make sure you go through this carefully.
The next thing you should endeavor to find out in an income protection policy is the monthly benefit amount as well as the manner this will be paid every month.
The general trend is that income protection policies replace 50 to 60 percent of an individual's monthly salary.
But these figures vary from company to company.
One other area that should be carefully perused is the benefit period.
This mean the entire duration that payments will be made in case you are incapacitated by illness or injuries.
In most cases, time or age limits are often stipulated with policies, so find out what these are.
With these done with, you should now go on to evaluate your total savings and liquid capital against your projected monthly expenditures, not forgetting to deduct any work related expenditure that will not occur during an absence.
If your calculations show that your liquid assets will not cover your expenditures for an extended period of time, then it is time to start considering an investment in an income protection policy.
According to statistics from the U.
S Department of Commerce, more and more American are living from pay check to pay check, and a reputable insurance consulting and research organization called JHA also reports that the probability of individuals to suffer serious illness or injury that will require disability insurance is three and a half times than they are to die and need life insurance.
These facts are nothing but a reminder of what would happen if a tragedy should strike.
Therefore, it is important to lay out every factor outlined above in plain view, as this is the best way to help you determine accurately whether you need income protection or not.
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