Understanding coverage of income protection insurance

Uncertainty is a part of our lives these days, and it affects all walks of our lives, including our jobs. You could well be driving merrily to work when you feel that twitch at the backside, only to be diagnosed with a kidney that needs immediate surgery! Diseases and accident could out you out of your job for extended periods, so much so that you will expire all your sick leaves and will end up being away from work without any pay. How do you plan to manage our expenses, when it’s likely that you would need a lot of money to pay the medical bills? Insurance is something that protects you against all these uncertainties of life, and income protection insurance is what helps you manage your life well even when your income ceases to exist. Here is everything you need to know about income protection insurance, apart from the fact that when you qualify for payment, it gives you the pre decided amounts as per the terms of payments agreed upon.

When does the policy come into action?  

‘When’ is the most integral aspect of your income protection insurance, the answer to which governs as to when your policy pays out. The answer depends on the type of policy you choose. There are 3 major types of these policies, and here’s a quick run through them.

  • Own Occupation – This type of policy pays when you are unable to do your own occupation because of the nature of the injury or problem caused to you, irrespective of whether you can do any other job or not.
  • Suited Occupation – This is a policy that only pays you when you are rendered unfit to take up any occupation suited to your skills and qualifications.
  • Any Occupation – The lowest level of cover comes with this type of policy, which doesn’t pay unless the insured person is rendered unfit to take up any occupation

What all does it not cover?

As much as it is important to know about what all the policy covers you against, it is also important to know about what all it includes. These exclusions are explicitly listed in the clauses of your policy statement. Any illnesses or diseases that you are suffering from at the time of purchasing the insurance is generally excluded from the coverage, as are disabilities that result from criminal acts. Also, illnesses and health problems resulting from misuse of drugs and alcohol are also excluded from the policy. Self inflicted injuries are also beyond the coverage scope, for obvious reasons. Leading players in the income protection insurance market offer you great insurance products that clearly mention the scope of coverage. You might want to visit Suncorp income protection website to know more about how income protection cover can prove to be a lifeline in your times of misery, and how you can choose the most ideally suited coverage option.

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