|
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.
British Insurance Awards for best ASU protection
products
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
|
