Income protection insurance Australia is an insurance- product type which pays individuals percentage of his or her income if she or he is no able to proceed working out of an injury or illness. It is a similar insurance similar to the disability- income- insurance which has its basis from the United States of America (USA). The cost of an income protection insurance policy may at first be seen as fairly high and this is due to the substantial guarantees offered by the policy. It is possible to reduce the cost either by opting for an increased deferred period or else by choosing an occupation which is viewed favorably by the insurer. It should be noted that for business owners who provide cover for their employees this cost is deductible as a business expense.
BENEFITS OF INCOME PROTECTION INSURANCE
The IPI offers its stakeholders various benefits compared to other companies offering insurance- policies. They offer benefits such as sickness, accident and unemployment- insurance and personal sickness and accidents e.t.c. These benefits include:
) Benefits are tax free and are regularly paid to these policyholders.
2) So long as the policyholders persist in payment of his or her premiums, the insurance company will never refuse or cancel the renewal of the policy.
3) They provide a waiver- of- premium where premiums are not required yet the benefits are paid out while the policy- cover proceeds normally.
Other benefits enjoyed by policy holders include:-
a) The application is easy, quick and user- friendly.
b) IPI protects one’s valuable assets e.g. income
c) The policyholders are paid 75% of their gross income per month.
d) Policyholders use this paid income to cater for their expenses so that one doesn’t fall- behind.
e) Income protection insurance Australia provides security to a person and to his or her family.
f) It gives a cover of up to or over six months.