|
Income Protection Insurance policies can individually
cover your income or indebtedness such as a rent
or a mortgage, or a combination of these if you
are unable to work because of illness, accident
or you become unemployed. Some Income Protection
Insurance providers allow you to vary the type
of Income Protection Insurance cover, so that
you can choose; just accident and sickness, or
just unemployment cover for example.
Most Income Protection Insurance policies stop
paying out after a set period, normally 12 months
although some Income Protection Insurances pay
for only six months.
Income Protection Insurance policies aren’t
simple to understand and contain a host of terms,
conditions and exclusions. You need to read the
Income Protection Insurance policy document carefully
to ensure to understand exactly what you’re
covered for, and more importantly what’s
not covered.
The broker who sells you an Income Protection
Insurance policy should, in the key features section,
explain the important cover details and draw your
attention, in the policy wording to important
or unusual exclusions. They should also make sure
that the Income Protection Insurance they sell
you is suitable for your needs. However, be aware;
many Income Protection Insurance providers are
failing to do this.
When your Income Protection Insurance starts
you normally have to wait for 120 days before
you are eligible to claim. For example, in most
Income Protection Insurance policies you can’t
claim for unemployment until you’ve had the
policy for four months. With accident and sickness
you can normally make a claim as soon as the Income
Protection Insurance policy starts.
Claiming
Once you are eligible to claim, you normally have
to be sick or unemployed for 30 days before you
receive any money - this is known by the term
claim excess period. However, some Income
Protection Insurance polices will back date the
benefit to the first day of your claim. This is
known as back-to-day-one cover.
Claims as a result of medical problems that you
have had or were treated for in the last year
won’t normally be covered under an Income
Protection Insurance policy.
This could mean that your claim will be turned
down if you are unable to work due to an existing
condition. Under the insurance code Income Protection
Insurance providers have a duty to ensure their
Income Protection Insurance is suitable for your
needs and so it is essential that you disclose
anything that you think could affect your Income
Protection Insurance cover. Before you can claim
for unemployment under any Income Protection Insurance
policy, you normally need to be in full-time work
for six months.
There can be different requirements if you are
on a fixed term contract or self-employed.
If you work part-time you normally need to be
employed for 20 hours per week to be able to qualify
for Income Protection Insurance cover.
Always make sure you are eligible
for cover when you take out an Income Protection
Insurance policy
|
