Income Protection Insurance shortly called as IP can replace monthly income of a person, if he is not in a position to work because of several reasons like unemployment or sickness.When there is no income, it will be difficult for the individual to manage the personal expenses of his family.While income protection insurance can offer the affected person with the required peace of mind, finding the appropriate policy can be bit challenging. Here are some useful information to people, who are new to the concept of income protection quote Australia:
Before beginning with the search for income protection insurance, an individual should decide on what he wants the insurance to cover.If a person is looking for protection of his general income, he can go for a policy that pays him with a monthly benefit in such a way that he can get funds for maintaining his normal lifestyle.This type of coverage might include council tax, bills, shopping for food, etc… He can also go for a policy that is tied to a specific debt, wherein this kind of policy can cover the cost of mortgages or credit card payment or personal loan payment.When it comes to coverage offered by income protection, it is better to decide well in advance as to what the individual wants to be protected against.Some policies offer protection only against sickness or accident and in this case when the individual is not in a position to go for job due to sickness or due to injuries caused by accident, the insurance company will pay for meeting the daily expenses. Some other policies cover sudden unemployment as well and most of these policies pay the insured for a maximum period of 12 months.
Another important point to be considered is the length of time for which the insurance company will pay.As mentioned earlier, most of the policies pay for a period of 12 months, however, there are long-term policies paying a monthly benefit until the insured gets back to his normal position and becomes fit to work.
Before selecting income protection quote Australia, it would be better to compare income protection policies offered by different insurance companies and it should be remembered that long-term policies charge more premium as compared to short-term policies.
There are companies that offer the facility to compare income protection insurance of different insurance companies and the person looking for an appropriate policy can make a comparison before arriving at a decision as to which policy to select.