16 Jun Types of Income Protection Insurance in Australia
Income Protection Insurance is a renewable type of insurance which is provided to any individual who want to avail the facility of taking benefit from his job while he is sick or got an accident. The older the insurance holder gets the premiums of the policy gets increased with every renewal of the insurance policy. In concern with the standard Income Protection Insurance the premiums of the policy which have to be paid by the individual at the initial time will be cheaper than the premiums he have to pay after having a renewal. The fixed policy also has the same terms and conditions as there are in a reviewable policy.
The benefit gained by an individual through a fixed insurance policy is battered with the price rises in the market therefore the policy provides a better benefit to the customer and as a result of which the premiums which have to be paid by the customer are also increased. Income Protection Insurance is not having a surrender value which can be gained by surrendering the policy at any instance of time because these are the unit linked policies which do not have an investment element. Most of the companies are providing the group Income Protection Insurance for all of their employees the only disadvantage of this type of policy for an individual is that they would not get any benefit from the policy if they cease the relationship of employee and employer with the company.
The Income Protection Insurance is expired if and only if the insurance policy holder gets retired from the work or if he is dead. If an individual is unemployed due to some other reason or if he haven’t got the job still then the insurance policy will not be used by him. The insurance is only beneficial to the individual if he is having a job and for any reason he is unable to continue working with the same energy. Income Protection Insurance can be beneficial to every individual who is sick or have got an accident and he want to continue his job after recovering from the state of sickness.