Income Protection Insurance, also known as IPI Insurance, can help you maintain earning an income while you are unable to work due to injury or illness. Many times after an injury you are tied up with physical therapy or confined to bed and are unable to work at your current job. IPI policies are designed to protect you in the unlikely event that you cannot support yourself and your family, and the policy then pays you a fee that will help you to maintain your current way of life until you can get back on your feet.
Many health insurance policies are expensive, and they do cover a significant portion of your medical bills. But who is going to pay your rent and your car payments while you are sitting in a hospital bed for an extended period of time? As you get better, you mortgage and your utility bills continue to mount and accrue late fees. You need to get introduced to the principle of income protection insurance, so you can rest a little easier in the event you become disabled.
The unique benefit of getting an income protection insurance policy is you will receive protection of up to 75% of your income due to a disability. Your premiums are also tax deductible, which can save you a lot of money at tax time. Many insurance companies offer different types of income protection insurance, depending on certain qualifying factors. Some of the policies provide coverage for people with extremely hazardous occupations. Other income protection insurance policies cover the majority of occupations that do not fall into the class of dangerous or life threatening work.
Most income protection policies will continue to make payments until the policyholder recovers from the injury or sickness. The benefit payment you receive will either be sent to you weekly or monthly or be tax-free. As long as your premiums are being made, the insurance company cannot cancel or refuse to renew your IPI policy. Be sure to see when you apply for an income protection insurance policy that you may have the option to pay a slightly higher premium in exchange for having your monthly premiums waived in case of sickness or injury. You will find that no one policy is set in stone, you can look for features you like in one policy and adapt that to another policy, creating the perfect policy for your current needs. If you want a lower premium you can expect a lower benefit payment, and vice versa.
You can apply online and receive quotes on the different types of income protection insurance a provider offers. You can also read about the restrictions in place concerning what income protection policies do not cover. For example, many policies will not pay out benefits if the incident was drug related like an overdose or abuse. Many policies will not pay out if the policyholder has a change of occupation. In addition there are limits to the total amount that can be paid out over an extended period of time. Do your homework before you jump in a policy, and read all the details concerning coverage benefits and restrictions. MLC are a leading provider, click here to read about their income protection insurance.
