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Tide Over Trying Financial Times With Income Protection Insurance
Tide Over Trying Financial Times With Income Protection Insurance
It is important to get income protection insurance so that even in times of financial distress, you can manage things comfortably.
Sydney,
NSW,
Australia
(prbd.net)
06/07/2011
Sydney, Australia : Income is without doubt the most important asset that you must protect to ensure that you have a comfortable existence even in financially crippling times. Illnesses always come unannounced. Major illnesses can prevent you from earning your livelihood simply because you are in no state, physically or mentally, to carry out your professional duties. You have to be ready to face such situations head-on. The best way to do this is to obtain income protection insurance. They take care of your needs and that of your family when you cannot work because of illness either for short-term or for a longer period of time.
Most policies under income protection provide the policyholder with an income that amounts to 75 percent of their average salary when they lose their ability to work because of illness. Contrary to popular thinking, income protection policy is not similar to life insurance. There are many differences.
The policyholder of an income protection policy gets paid when they are unable to work because of reasons of illness. A life insurance policy payout benefits the nominees of the policyholder after their death.
There are many types of income protection insurance available from various policy providers. It is imperative to make the right choice of service provider and the policy. This will of course depend on the type of income you will need to carry on comfortably when your paycheck stops coming in. For instance, individuals who have fewer people dependent on them find it convenient to obtain a policy that accounts for 50 percent payout of their regular salary.
There are many riders that insurance companies attach to an income protection policy. Expert guidance from professional insurance advisors can help you make the right choice.
Do you smoke? Your policy will certainly be more expensive than it would be for a non-smoker because of the health hazards of smoking tobacco. Similarly, your general health condition will also dictate your premium amount to a large extent. It is necessary to purchase a policy keeping in mind your future income and expenses. An income protection insurance policy with a fixed premium is advantageous to many policyholders because they will be paying fixed premiums for the entire term of the policy.
Insurance policies are a confusing subject because there are many intricacies involved. It is impossible to make a firm decision without the help of experts. It is recommended to get your income protection policy from reputable and experienced insurance providers rather than go with up-and-coming companies.
An experienced insurance provider can help you in taking the right decision by taking into consideration your specific circumstances. They will also explain the tax benefits that you can gain from certain income protection policies. It is observed that in most of the cases, the income protection insurance policy premiums come under the purview of tax deductions. This can certainly work to your advantage in the long term.
For detailed information about income protection insurance and its various benefits, visit www.incomeprotectioninsurance.net.au.
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It is important to get income protection insurance so that even in times of financial distress, you can manage things comfortably.
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