Life Insurance, Insurance Policy, Income Protection, Cover Austral, Lialife Insurance Policy, Income Protection Policy, Insurance Advisor

Death remains one of the most fundamental realities people face. It elicits different emotions in different people. People experience grief, sorrow, anxiety, apprehension, trauma and in some cases, even joy. However, the one emotion that accompanies each death remains the feeling of uncertainty. Coping with an uncertain future can be quite a handful. It can be so especially if it succeeds the death of a loved one. In these situations, the onus of looking after those left behind, usually falls on the eldest family member. With several things to manage, you must avoid loading yourself with additional problems. For example, you need to manage the finances to meet your monthly expenses. This is true especially if the deceased is the sole earning member of the family. This is why you need to buy life insurance. Buying a cheap life insurance policy is not difficult nowadays. A helpful and skilled insurance advisor can help you buy life insurance. The insurance advisor can assess your needs and then advise you accordingly. However, a good life insurance policy will provide death benefits to those left behind. Therefore, the life insurance policy remains worth it if you have dependents. Nevertheless, merely having a life insurance cover will not cover all the gaps. For example, consider this situation. Imagine a situation where you suffer from an illness or an accident that prevents you from working. You might have a leave balance at the office, which will come handy in giving you paid leave. However, leave balances are not inexhaustible. Therefore, if you find yourself in a situation like this, you would have to use money from your savings in order to pay all expenses. Your savings too, might last for a few months. Thereafter, you will struggle to find the money to meet your daily needs. In situations like this, an Income Protection insurance policy can be very useful. Some people also call it the Salary Continuance insurance policy. This policy provides you with up to 75% of your current income, in situations such as the one illustrated above. Therefore, if you find yourself unable to attend work because of an illness or injury, this policy can help you meet your monthly expenses. Before purchasing the income protection policy however, you must note the definition of the term “disability”. Each life insurance company has a different definition for this term. For some insurers, it represents time-based disability; for others it represents income-based disability. It could also denote duty-based disability. Hence, it remains worthwhile to understand the definition of this term, to avoid unpleasant surprises later. When you purchase an income protection policy, consider a few factors. These include: • Benefit Payable: This comprises of three types of benefits, namely: • Agreed Value: This is the best type of benefit available. In an Agreed Value policy, you would need to prove that your income was sufficient or equivalent to the benefit claimed. You would need to prove this as being true for a period of twelve months prior to applying for this insurance. In this situation, if at the time of making your claim, your income was lower, you would still receive the benefit agreed at the time of inception of the policy. • Endorsed Agreed Value: Under this policy, you need to provide evidence of your financial income at the time of applying for this policy. Typical examples of evidence could be financial bank statements and tax returns. Under this policy, the insurer will not seek any further financial evidence at the time of the claim. Further, if the insurer deems the claim as being medically acceptable, you will receive the entire benefit. • Indemnity: Under this policy, you would need to prove that your income at the time of the claim is equivalent to the benefit claimed. Thus, if your income dipped at the time of filing the claim, you would not receive the entire benefit. Because of this, these policies tend to be cheaper. • Benefit Period: Some policies provide benefits for the duration of a lifetime. However, most insurance companies limit the term for paying benefits until the insured reaches the age of 65 years. • Waiting Period: This denotes the period after the disability when the insurance company will not pay any benefits. Income Protection policies usually have a waiting period that ranges from two weeks to two years. • Inflation: Ensure that your policy covers you for inflation. For policies of short terms i.e. a few years ahead, this factor will not make much of a difference. For example, if you are 63 years, then you do not need inflation indexing, as you will receive benefits until you are 65 years. However, if you are 36 years, you would need to have a policy premium linked to the inflation index. This would ensure that your money is worth the investment at the time you need it most. Regardless of whether you need income protection or disability insurance, Cover Australia has a policy for you. An unparalleled expertise and knowledge acquired over 27 years, gives us a perfect understanding of your insurance needs. Hence, it comes as no surprise that behind the smiles of several Australian families lies Cover Australia’s cover of protection. Therefore, when you think of life insurance and need security, remember that we cover Australia. Published at: