The Key Features of Income Protection
Income Protection Insurance has many features that you should be aware of and this is where we advise our clients based on their personal and financial situation. Some of these features include:
- Income Protection Insurance allows you to cover up to 75% of your salary.
- Income Protection Insurance is tax deductible should this be held in your personal name.
- Income Protection Insurance has various waiting periods (time to claim) such as 14, 30, 60, 90 or 180 days (premiums are cheaper as the waiting period increases).
- Income Protection Insurance offers various benefit periods or ‘how long you can receive benefits for’. This includes 2 years, 5 years or up to 65 years of age.
- Some Income Protection providers offer a ‘redundancy option’ that will cover your mortgage repayment if you are made redundant. This means you can make a claim even if you do not suffer a sickness or injury.
- Income Protection Insurance has two features such as ‘indemnity style or agreed value style:
- Indemnity style option means that you have to prove your income at the time of claim.
- Agreed value option requires you to prove your income on application. As such, should your income decrease at the time of claim, you will receive the agreed amount insured at the time of having your policy approved.