Income Protection Insurance in Other Countries

Income protection insurance is a type of insurance policy which is primarily available in countries like Australia, New Zealand, Ireland, United Kingdom and South Africa other than USA. The insurance pays benefits to the working people who become incapacitated to perform their regular work due to some injury or illness. It was known as Permanent Health insurance. Most of the income protection companies in these countries cover individuals who are working and pay a part of their income in case they are disabled due to injury or illness and cannot carry on their regular job.

The income protection insurance mostly covers 75% of their income for a defined period. In almost all the countries there is a waiting period for which the insurance companies do not pay any benefit and the dates are calculated for the same from the day you file the claim. The waiting period varies from 30 days to 2 years and the insured has the liberty to choose the same. However, longer is the waiting period, lower is the premium amount. The length of the benefit depends on the type of coverage that you have taken. It can be for 2 years, 5 years or till the age of retirement. Once your eligibility is confirmed, the company provides the benefit till the insured gets back to work, retires or dies, whichever comes first.

Most of the policies in Australia provide benefit to an insured if he is not able to conduct his occupation, even if the hold policy is under superannuation. In Australia the income protection insurance is underwritten which includes medical, business and income risk. The application sent should include information on the medical history, occupational history and also the history. In case of probability of high risk of the insurer, the company may include exclusion or increase the premium amount. When the application is sent the income of the person seeking insurance need to be substantiated, after which the benefits are paid as agreed upon and no more further medical history is required.

The income protection insurance is very much same in all the countries with an exception of a few. All such insurance policies have the same aim of protecting your income or safeguarding your family from financial crisis when you cannot go to work due to some medical condition. If you are working, it is advised that you take up income protection insurance plan.