Australia has one of the best insurance policies available around the world. Most people in Australia enjoy a high standard of living and most citizens avail of the different types of insurance to minimize the impact of risks in every aspect of their lives. Seldom will you see a person who has no car insurance or life insurance in Australia. The reason for this is that Australians understand perfectly well the value of insurance policies, and they would willingly pay for insurance that would insure that they will be properly compensated in case some accidents or illness befall them or their properties. One of the popular types of insurance in Australia is the “Income Insurance Protection.” This type of insurance provides benefits to a policyholder in case that person suffers accident or illness which incapacitates that person from performing his/her own occupation or work. This type of insurance will readily provide a sort of replacement of an income for a person who becomes incapacitated due to injury or illness.
IPI in Australia
The usual coverage of Income Protection policies in Australia is around 75% of the total income of a person. Likewise, most of the policies that are offered in Australia provide benefits to a person even though the policy is usually included within the superannuation. This type of insurance is available in Australia, not only to regular employees, but also to the self-employed people. However, the income protection is much more necessary for people who are self-employed because these people are usually not eligible or included in the coverage of Worker’s Compensation.
In choosing an Income Protection policy, you will be given options and you will be required to select from these options at the onset of your IPI application. These options hinge on the two important aspects of IPI. The first is the “waiting period” which is the specific length of time that starts from the date of your injury or illness. You have several options for this waiting period such as 14 days up to 2 years. The rule of thumb for this waiting period is that “the lengthier the waiting period, the less the premium is.
On the other hand, there is another set of options which pertains to benefit period. The options for the benefit periods start with 6 months option up until you reach the age of 70. The premiums vary significantly among the policyholders, depending upon the various inclusions and the options taken by the policyholders.
All insurance, like the Income Protection, have to be underwritten. Underwriting refers to usual processes done by insurance company to readily know if a person is eligible for the insurance coverage. This process is also applied in the assessment of the eligibility of person for availing of the Income Protection. Hence, insurance companies assess the medical risk and income risk associated with a person. They would often ask the person to provide a medical history and a history and information regarding applicant’s occupation. Likewise, the income of an applicant needs to be substantiated at the onset of the application. To learn more about Income Protection in Australia, you can readily visit http://lisagroup.com.au/income-protection-insurance/australia – Australian income protection.