08 Nov Cost of Getting Income Insurance
The cost of getting income insurance depends upon a number of factors like age, occupation, smoking addiction, gender and a whole lot of other things. However, these factors should not be bar in getting you a good deal on income insurance. The cost of income insurance will be just about what you deserve i.e. if you smoke, you will end up paying more in premiums than a non-smoker. If you are healthy, you will have to pay less than an unhealthy person.
Factors that affect Cost of Insurance
The most important factor is the age. More the age, more you will end up paying for the income protection insurance. This is because with ageing, person becomes prone to many diseases which are unlikely to affect at younger age. Thus, if you are a 50 year old man, you will have to pay more than a 35 year old individual for income insurance. The next most important factor is the type of job or occupation you are involved in. For example, if you are involved in a hazardous job, you will have to pay more than a call centre professional. Thus, a coal mine engineer will have to pay a larger premium than a normal shop owner. The past health record and current health condition is also one of the factors responsible for cost alteration of income protection insurance. Also, if you have a habit of smoking or you have smoked up in last one year, you will get a costly policy. This is one of the ills of smoking that the tobacco companies won’t tell you. You will be charged as per a smokers policy as defined by companies. The cost of the insurance policy also depends upon the time factors like waiting period and benefit period. Along with all these factors, certain additional policy characteristics like type of policy i.e. if you want a basic policy or a comprehensive policy and some special customized clauses.
Determination of Benefits
Your level of income will also play a role in the amount you will get back in the form of benefits. Higher it is, lesser will be the percentage of income you will get back. Also, the type of occupation will also affect the level of benefit. The benefit period will also contribute in the determination of the amount. At large, income insurance depends upon several factors and you must keep them all in mind while buying a policy.