Income Protection Insurance
One of the kinds of insurance which is meant for all the working people is the income protection insurance which has been mainly designed for circumstances when you are temporarily out of work due to illness or injury. For this insurance, you can choose the contract term as per your liking such as you can choose it as five years or even up to the age of 60 years. The number of years you choose is solely dependent on the amount of the cover you can pay each year. For individuals who are single in life, the income protection insurance seems to be the best one that suits their needs and demands. This insurance type has been designed in such a way that it works the best in terms of the cost that is necessary to ensure ‘living’ rather than on the payout that the family members are bound to receive after the death of the family member.
Under the income protection insurance, there are mainly two varieties: One is the indemnity and the other is the agreed value. If you want to go in for an indemnity policy then it is usually provided through the superannuation funds and the premium for the same is debited from the members’ account. Under this type of insurance, there is the agreed value insurance which is a costly option as it is not affected by the fluctuations of your monthly salary. The policies of the indemnity value are quite common and are quite expensive at the same time and at the time when you put out your claim, your income is verified and accordingly the benefits are adjusted. The cheapest option in such cases is going for a policy with superannuation funds as the indemnity is value-based with lesser flexibility of course.
All the above-mentioned policies have their own set of benefits. The purpose of agreed value is to cover up for you even if you are unemployed and this type of insurance seems quite valuable for people who are self-employed. An individual having regular and reliable income, the indemnity policy is the best. Some of the superannuation funds allow you to make applications without the need to produce medical checks. In all, the three different types of income protection insurance are aimed at helping employees who have different types of employment and thus, as a working individual you can choose the insurance as per your current circumstances and needs.