Business
Income Protection Insurance And Why It Should Be On Your Radar
![Income Protection](https://lemonyblog.com/wp-content/uploads/2024/07/Income-Protection-scaled.jpg)
In times when it seems we are bombarded with new and evolving forms of protecting ourselves and our loved ones with insurance, we might be forgiven for approaching the subject of income protection insurance with a touch of cynicism. However, the picture takes a different look when we discover its benefits. Income protection insurance can mean the difference between horrendous financial difficulties and a relatively easy existence during times of crisis and should not be dismissed without further investigation.
Table of Contents
What Is Income Protection Insurance, And How Does It Work?
A basic description of income protection insurance is that it is a policy designed to replace most of your income from regular employment if you are incapacitated and unable to work. The reason must be legitimate (typically involving sickness or injury), and there are some significant eligibility requirements, exclusions, and caveats we will explore in the following sections.
Eligibility For Income Protection Insurance
Individuals will only be accepted for income protection insurance if they fulfil the following criteria:
- They must be a citizen (naturalised or otherwise) or permanent resident
- Individuals younger than 18 or older than 59 will, typically, not be offered coverage. This upper age limit can be reduced further if the occupation involves a high risk of injury or illness.
- The period of employment must be for no less than 20-30 hours per week (again, this depends on the occupation in question)
Exclusions And Other Caveats
The following circumstances will nullify any standard income protection insurance policy. Whether the nullification is permanent or merely for the duration of the condition in question varies and is something you must research before acquiring any policy.
-
Absences Related To Pregnancy
It is worth checking the exclusions here carefully, as the list of symptoms that invalidate any claim is long and complex. Any period away from work that can be directly attributed to an ongoing pregnancy renders the policy invalid, and it will not pay out.
-
Self-Inflicted Injuries
Income lost due to deliberately self-inflicted harm will not be compensated for.
-
Suspension From Employment
If the policyholder is suspended (temporarily or otherwise) from work, no matter the reason, any shortfall in income is not eligible for repayment.
-
Illegal Activity
Criminality of any kind leading to unpaid absence from work, whether through injury or incarceration, will not be covered by any income protection insurance policy.
-
War
No coverage will be provided in the unlikely event that the policyholder is injured or incapacitated due to an act of war.
Please note: Any legitimate claim against your income protection insurance policy will require an official record, typically a medical report from a recognised medical practitioner that can be independently verified.
Final Thoughts On Income Protection Insurance
Unlike some less complex forms of insurance, it is harder to say that income protection suits everyone. The exclusions are harsher than some other policies, and not all will be eligible. However, it is safe to say that if the premiums fall within your affordability range and you meet the stringent requirements, income protection insurance can be immensely beneficial. Not many of us can easily overcome the sudden loss of income, especially if we are injured or otherwise incapacitated. Knowing that we will be compensated when we cannot work is a great relief and assuredly worthy of consideration.
![](https://lemonyblog.com/wp-content/uploads/2020/04/logo-e1586838286342.png)
-
Business3 years ago
How to Do Long-Distance Moves with Children
-
Travel2 years ago
Quick Guide: Moving To Santa Rosa?
-
Business3 years ago
Is Guest Posting a Good Inbound Marketing Strategy?
-
Business1 year ago
The Ultimate Guide To Thriving In Your Printing Franchise
-
Business1 year ago
Exploring The Benefits And Challenges Of Restaurant Franchising
-
Real Estate3 years ago
Why Dubai Festival City is a Great Neighbourhood for Young Learners
-
Tech3 years ago
Cyber Table That Will Change Your Life
-
Lifestyle1 year ago
Dallas’ Hidden Gems: 6 Must-Try Restaurants Off The Beaten Path!
Recent Comments