Income Protection Checklist

Income protection insurance is a must for all the working people who want to insure themselves in case you cannot go to work due to some medical reasons.  Mentioned below is the checklist before buying an income protection insurance policy:

  • Go through the product description and the terms and conditions carefully. It may seem a bit boring to read it but it will give you an insight into the coverage and its benefits.
  • Make a list of all the questions that you have in your mind regarding income protection and it is of paramount importance that you get each of them cleared and have clear idea about the benefits of taking an income protection insurance plan.
  • Try choosing a plan which is non-cancellable as it will prevent the insurance company to reassess your health or any other factors when you renew your plan.
  • Check for any offset clauses which allow your insurer to reduce the payout which is based on many other income factors.
  • Check for the waiting period set by the insurer and the also the period of the benefit.
  • Check if you have any existing insurance that is connected to any of your superannuation.
  • Check if the insurer provides guaranteed future insurability so that you can increase the level of cover without any need for underwriting.
  • Understand about the types of premiums and the mode of their payments and how they are going to change over time.
  • Get full knowledge on the benefit structure and how they are going to change over time so that you make sure that the payments are in line with the inflation.
  • Any ambiguous terms should be clarified
  • Check if the policy that you are taking pays benefits only when you are into specific occupation or any type of occupation.
  • If you are smoker there are chances that you end up paying 50% more premium than the non-smokers and in such case you will need to shop around for the one which gives you the best deal on the premium.

These are some of the things that the person seeking income protection insurance must keep in their mind or make a part of their checklist. This will help them get the best deal on the premium as well as benefit which is definitely going to give them peace of mind even when not able to go to work in case of a medical necessity.