Income protection insurance is becoming more and more popular in Australia. White-collar and blue-collar workers alike are intending to obtain and buy income protection insurance policies so they could be sure they could still get income flow even if they become unable to work for a while due to any injury or sickness.
If you are an entrepreneur, you could also take advantage of the income protection insurance. You may not be able to obtain that insurance for your business but you could certainly get a personal insurance policy as a business owner or operator. What type of income protection insurance should you get and in what terms?
Before you apply for an income protection insurance policy as a small business owner, you must first understand how premium rates and costs are structured. In general, you could take an option if you want to make sure you would get the best and most appropriate for your needs. It is recommended that you take an agreed value income protection insurance policy.
Agreed value policy is the best and most appropriate type of income protection insurance for owners of small businesses. To apply for the product, you would need to submit financial information about your business and its income flow. You would not need to submit such documents again especially when you need to make claims. Thus, even if your business fails or if its revenues drop, your claim proceeds would not diminish. However, your premium could be 20% higher compared to other ordinary income protection policy rates.