Considering an Income Protection Insurance Quote
What’s with income protection insurance quotes
With the great benefits that income protection insurance provides to salaried workers, it is not surprising that more and more people are trying to protect their incomes using this very essential financial tool. Today, there are several physical and online providers of income protection insurance quotes, and it is actually very easy to find someone to protect your income with insurance. But you will need to keep your eyes wide open when you are selecting someone in this area. Different insurance providers have different rules and clauses on income protection. You must make sure you are getting what you are looking out for.
Before you get your income protection quote, look at the following five points. These are the factors on which the income protection quotes will depend.
1. The percentage of income that will be paid out ? One of the most important things to consider is, how much of your income will the policy pay out when the situation arises.
Most income protection insurance providers pay out 70% of the gross income of the person when he or she was actively working.
Online providers will pay a little more, because they have less overhead expenses and they don’t mind passing on a part of these savings to their customers. If your income is too high, you may be paid out less. Make sure at the start how much you will get if an unfortunate circumstance of your physical or mental redundancy to work actually occurs.
2. The period of deferment : Every income protection plan has a period of deferment. This is the period of time between the occurrence of your redundancy and their actual paying out. The period may extent to as much as six months. Within this time, the income protection insurance providers will not pay out. So, you need to make sure how much this length of time actually is. A short deferment period is of course much better for the policyholder.
3. The frequency of the payouts : Again, there is variation among various income protection providers on the frequency of their payouts. Some of them will pay on a monthly basis, some will pay fortnightly. This will slightly alter the quote that you will get.
4. Residence: Almost all income protection policies will have restrictions on the policyholder as regards place of residence. It is necessary that the person must reside in the same country as where the policy was taken. Travel is permitted, and the person can even visit other countries for a few months. But it is important that you find out their policies regarding this. You will not be able to change your residence and move to another country though. If you do, you will lose the benefits of the policy.
5. Tenure of the payouts : This is a very important factor on which the quote of the income protection policy will depend. The longer the tenure of the payouts, the higher the quote you will get. If you want an income protection policy to pay you until your death from the point of redundancy, it will be the costliest quote. Generally, income protection policies will pay out until death, retirement, complete recovery or taking up a job, whichever is earlier.
Where to get income protection insurance quotes:
a. Financial Services Online – financialservicesonline.com.au