| |
Newsroom /
Finance
/
Finance
/
Insure4u Assists Australians When Buying Income Protection Insurance
Insure4u Assists Australians When Buying Income Protection Insurance
If the unexpected happens and you are unable to work due to serious injuries or illness, how will you manage?
Sydney,
NSW,
Australia
(prbd.net)
02/04/2012
It is a reality of everyone’s life that most of us are more concerned on making plans about where we’re heading and what were going to do in the future rather than considering the things that might go wrong. Though this is a good life strategy; however, with our nation’s financial markets still struggling in these times of global economic uncertainties, achieving, sustaining and maintaining all these future plans is dependent on maintaining not only our health but also the income to support them.
Where each year more than 700,000 Australians receiving disability support pensions are forced to survive on only less than $15,000 per year, it is becoming more apparent than ever the absolute necessity of obtaining adequate income protection insurance Australia coverage.
With this uncertain financial market, it has become more obvious that our incomes can be vulnerable. If the unexpected happens and you are unable to work due to serious injuries or illness, how will you manage?
With these threatening situations, it has become vital to get income protection insurance in order to maintain yours and your family’s standard of living over prolonged periods of incapacity.
And the best way to ensure that you are buying the most suitable income protection coverage for you and your family is to first arm yourself with the right and up-to-date information. And this is where, Insure4u can help you.
How?
Insure4u ? an Australian based insurance advice and information blog site ? has always been well-known for providing its visitors with the best and most up to date information with regards choosing the right insurance plan and coverage.
With the help of Insure4u, you will be able to learn the best relevant information, guides and tips about Income Protection Plans that you could explore freely at your convenience, enabling you to better compare income protection.
Through Insure4u, you can read relevant and insightful up-to-date information about what income protection offers to protect you against accidents, sickness or unemployment as well as information on its costs, benefits and the process of finding the right income protection for you and your loved ones ? all at your disposal.
And here’s what Insure4u says about buying income insurance:
In buying income protection, Insure4u advices you to consider these key considerations: the amount of coverage needed, how different forms of income insurance work, the ongoing household expenses an insurance payment might need to cover and the best place to start getting information.
The amount of insurance coverage you need must be calculated on the basis of how much money you would need in order to replace whatever you are insuring. To do this, you must take into consideration the financial commitments that are supported by what you earn. Usually, these might typically include: mortgage and car loan payments, school fees, insurance premiums and food and bills.
You should also consider that the income insurance usually pays out only up to 75% of your income, not the whole amount. And with the additional expenses that you might incur during such a time, it can be a significant burden if you are only receiving 75% of your regular income. So, you should first work out the bare minimum of replacement income that you require if you were unable to work for a while.
As income insurance has two basic forms ? agreed value’ and ‘indemnity’, you should know and understand its differences so that it will be easy for you to choose.
Because there are vast differences between the two basic forms of income protection, it is very important to weigh up the differences.
Insure4u says that perhaps the biggest difference between the two is its how the benefit is calculated:
Under agreed value cover, the benefit is based on your income at the time you’re out of your income protection policy while under an indemnity based policy, you’ll receive a benefit that is calculated based on your earnings during the period just before your claim. This could be a problem ? according to an analysis by Choice Magazine ? as if at the time of your claim, you had been on maternity leave, been unemployed, or reduced your hours during that period.
Moreover, indemnity income protection has its advantage over agreed value policy for being generally cheaper as well as being easily accessible as it can be access through your superannuation fund.
Visit http://www.insure4u.com.au/income-protection-insurance/ for more income protection insurance update.
About
Insure4u is an insurance guide to aid you in making the right decision when choosing insurance for you and your family. From income protection insurance to funeral insurance, we provide you with advice to help you make the right decision.
|