To buy income protection or not to buy income protection?
Should you invest in income protection insurance? The answer is most likely yes. Income insurance is just that: should you be unable to earn your income because of illness or injury, your income insurance would begin paying out for up to two or five years or until you reach retirement age (currently 65), the three most common terms in Australia. Income protection will cover you for up to 75% of your current gross salary in Australia.
How much can you expect to pay for income protection? Premiums vary from insurance company to insurance company so be sure to compare. Your age, salary, and health condition will affect premium rates. Whether or not you smoke will also make a difference in your income insurance premium. If you have smoked in the past 12 months, your rate will be higher. Thankfully, if you quit smoking you can have your premium rate reduced after 12 months.
Other things that may affect your income protection premium rate include your occupation and your job description. Dangerous jobs or jobs that involve some sort of risk like those in the mining and construction industries will mean higher premiums for you because there is a greater likelihood you will be injured or fall ill and use your income protection.
March 06 2011 | Life Insurance & Income Protection Insurance The Best Helping Hand | Comments Off