Life Insurance and Income Protection

| November 4, 2012
Life Insurance and Income Protection

Life Insurance and Income Protection

The best security that one can provide to the family is when they are not around. When we are with the family, what we provide is the responsibility and it becomes the right of the family, but what happens after us. This is when the life insurance plays a major role in attending family needs when you are around and when you are not as well. This is just like insuring any other thing, your vehicle, your house etc. These life insurance policies have various types in them basing on the need and budget of the person who has to insure. When you take a life insurance policy on your name and start paying the premium, it means that you are safe guarding your family with a monitory back up to attend them and their needs in your absence. What is important here is to pick up the right policy and right agency for the purpose. There could be many reasons for a human death and today, insurance policies cover almost all causes. There are medical insurance policies to cover the illness of the insurer. There are accidental death/ injury insurance policies to cover the deficit that’s created by an accident. All these are the types in insurance policies. They include Income protection, Mortgage protection, permanent disablement insurance, whole life insurance, term life insurance etc.

The income protection

The income protection is the best way o protect yourself from a position where you become unable to earn. This is mainly because of any long term disability. It could be an accident, health or mental health it etc due to which you are unable to earn further. This policy will need certain premiums to be paid over a period of time. During this premium period any disability occurs to the insurer and they become unable to earn, then the insurance agency will be bound to pay a lumpsum claim amount or a monthly return basing on the clauses agreed. Under this policy you continue to get paid even after you start earning because you may get paid less due to reduced capacity to work. So once the premium starts the income protection plan will pay the claim amount however many times you fall unable to work. For example if he insurance agency agreed to pay for maximum of 180,000$ in an year then no matter how many times you fall unable due to accident, ill health etc they are bound to pay the claims.

Life Insurance and Income Protection policy

If your policy is to cover 180,000$ and you meet with accident twice causing disability to work, then the agency will pay the claims both the times. Only thing to remember is that the total amount (claimed multiple times) should not exceed 180,000$. The agreed amount also depends on how much premium you are paying to the insurance company. Another fact that should be kept in mind is that this policy does not cover disabilities to work like Maternity, recession, lay-off or resigning from the job.

Author Bio: Lexy McDonald is an associate for the team.

Life Insurance and Income Protection

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