Income protection insurance, known as unemployment insurance, is an insurance policy, which is to cover affected income of the policyholders who aren’t able to work because of critical illness or accident or losing job. This type of insurance is available mostly in New Zealand, Australia, South Africa, and United Kingdom.
Having Income protection
Having Income protection insurance is a way to get coverage of day to day living expenses at a time of your recovery period. If you have this insurance policy, you can easily maintain your expenses at that moment. This policy can cover 75% of your normal income until you are able to work as well and if you can’t back to work, it will continue till you are 65 year old; these benefits are paid weekly or monthly on regular basis and they also are free of tax. If policyholder pays premiums continuously, insurance company can’t be able to refuse or cancel to renew the policy provided.
Whereas some insurance policies offer higher percentage of cover, you should check them carefully before making a decision. Depending on conditions, your income protection policy can vary greatly; waiting period, policy type and benefit period can affect your coverage percentages. When you consider this policy, you should note something about income protection such as your age, occupation, and your health behaviors.