How to Pick the Right Income Protection Insurance in Australia

There are numerous insurance companies in Australia. This can make you confused on which one you should go for. However, choosing an insurance provider to cover your income isn’t that difficult. There are important factors you should consider before settling for one. Check this out.
1. Type of policy
Monthly premiums and benefits both depend on the type of policy you choose. For instance, you may pay expensive premiums for agreed value but the monthly benefits will be more. You will still receive the amount equal to your income at the start of insurance. This means a reduced salary by the time of claiming won’t affect the benefit amount.  There are many income protection insurance comparison services online that you can check.
2. Period of benefit
Once you claim your benefits, there is a certain period of time you will receive them each month. Longer benefit periods are derived from more expensive premiums. You should carefully evaluate the nature of your job and the possibility of getting injured. In addition, assess your family’s financial independence in case you can’t wok any more. For how long can they support themselves?
3. Structure of the premiums
There are three structures: level, stepped, and optimum premiums. Level premiums will be expensive at first but they won’t increase each year. Stepped ones are a bit cheaper at the beginning but they will keep increasing each year, although your benefit amount remains the same. Finally, optimum premiums will be unusually expensive at first. They will keep increasing up to a certain price when they will switch to level ones.
4. Additional built-in benefits
Some policies have built-in benefits apart from the normal ultimate benefit. This may include rehabilitation, accommodation, waiver benefit, and many more.
5. Longest waiting period
A longer waiting period translates to cheaper premiums. However, for how long are you willing to wait? How can long waiting affect your health and financial stability? These are some of the questions you should put in mind.
6. Monthly benefit amount
Most insurance companies offer 75% of your original income as monthly benefit. However, others may increase depending on the amount of premiums you pay.
Choosing the best insurer can make your future life better. Note that what suits another person may not suit you. Make sure you choose a policy that will not make you suffer financially.

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