In a well-developed country like Australia, the insurance market is roughly divided into three categories: life insurance, general insurance, and health insurance. However, a new insurance policy for income protection is devised in order to grant income to those groups of people who are unable to work because of specific injuries or illnesses. This policy provides benefits to the policyholders who are unable to carry out functions of daily living such as eating, washing, dressing and undressing, climbing stairs, cooking, etc.
As a relief to these policyholders, the benefit limit as per the income protection insurance in Australia usually makes up for a large percentage of the policyholder’s normal income. If you are an income insurance policy-holder in Australia and are unable to be engaged in your own occupation, you will most probably be granted a limit of around 75% of your gross earnings depending on your normal income. There are some high-risk occupations as well, wherein policies are offered to people belonging to “any occupation” immediately. You can also make a request after the period of your recovery based on your “own occupation”
In Australia, Income Protection Insurance is provided for employees as well as the self-employed while the latter is given more importance as they are ineligible for Workers’ Compensation.
You will be given a number of options under the Income Protection Insurance policy based on your ability to receive claim payments and as per options are chosen during the application period for any income insurance plan. Some of them are as follows:
Waiting Period: the applicant is eligible for the insurance benefits from the time of the illness or injury. The waiting period ranges from 14 days, 30 days, 60 days, 90 days, 180 days, 1 year and 2 years. The longer the waiting period, the lesser premium you pay.
Benefit Period: The duration of time that you are eligible to claim the benefits as per your chosen Income Insurance policy may depend on the severity of your illness or accident event. You can choose from benefit plans like 6 months, 1 year, 2 years, 5 years even up to the age of 65 years to 70 years.
Insurance companies basically give offers of different levels of policies which have various inclusions that depend on the options you choose during your application. Also, your premium may vary significantly.
Now you might have questions regarding the premium you are supposed to pay and all other factors which would affect the amount you pay. So yes, your occupation and some other factors might affect the premium you pay. Check the list to know more:
- Your gender and age
- Your smoking status at the time you apply for an insurance
- The Income Protection benefit plan that is being provided to you
- The Waiting and Benefit Period
- The state of your health and family history
- Your record of participating in any hazardous activities
While you consider going through the income protection insurance plans, it is important for you to contact a professional insurance advisor who would provide you with the right guidance and advice. The insurance advisor will educate you on the various schemes going on and would suggest the one most suited for you. He would charge you a stipulated fee for the services offered.
If you are looking for an income insurance in Sydney to suit your needs, here’s why Risk Wisdom should be your choice. Risk Wisdom, Australia is an independent and dedicated team of financial risk advisers, whose primary goal is to protect the quality of life for its valued customer base.
The Risk Wisdom group in Sydney with over 20 years of combined experience, endeavors to keep your finances secure, with a tailormade insurance solution, just right for you. They strive to lend you complete peace of mind, so you can be well prepared in the event of an unexpected injury, illness or untimely death.
While applying for an income insurance in Australia, you have to consider risks, as generally the income protection is underwritten at the time of application. This means that it includes medical risk as well as business and income risk. You have to make an application which will provide your medical history as well as your occupational information and history.
The insurance company is allowed to increase the premium or even apply for an exclusion or limitation benefit if you demonstrate a higher insurable risk (your illness or injury caused by accident).
If you are applying for an income insurance policy, you will also be needed to substantiate your income. When you substantiate your income during the time of your application, any kind of benefit for the future is most probably “agreed” to without asking for any medical evidence at the time of claim. If in case you are not providing any financial evidence at the time of application, your income has to be substantiated at the time of application while agreeing to the probability of a lower claim benefit being payable if you are unable to confirm your income status.
To conclude, applying for an income protection insurance is of utmost importance for the simple reason that one needs to be prepared in case an unfortunate accident or sickness makes you unable to perform your work. You can choose from a wide range of income protection insurance schemes that will suit your occupation and other needs. Get in touch with an insurance advisor at Risk Wisdom, renowned for the genuine and satisfactory insurance policies and get insured today to have a secure present and future.
So, are you going to be wise and choose an income protection insurance policy? Do it today to have a peaceful tomorrow.