When will you be protected under income payment protection insurance?
If you have applied for this insurance, you will be protected with a portion of your salary in case you are sick or injured. You will not be covered if you are made redundant or have lost your job.
Benefits of being protected under such an insurance cover?
You will be paid a portion of your salary when you are out of work. You still continue to earn while you are at your home. There is no need to worry about financial commitments, you can continue to repay your mortgages, and meet other financial obligation.
How much will you be paid in case you are unable to go to work?
This varies from one insurance company to another. Most of them pay up to 50 to 75% of your salary, every month. When you are unable to work, you will get this portion of your salary from the insurance company. You can use it for your grocery, kid's education fees, electric bill, mobile bills, medical bills and mortgage bills etc.
When does your insurance policy start to pay you?
It can start of from day one, you are out of your job. However, the period between your loss of job or inability to work till the day you are supplemented with a portion of your income is known as deferment period. This has a direct relation to the premiums you will be charged. In case, the deferment period has been longer, then you end up paying lower insurance premiums.
Can you enjoy paid leave (in case you are sick) and income supplement from insurance company simultaneously?
No, candidate can claim income from insurance if he is getting paid for sick leave from his employer. He is not allowed to earn multiple salary, both from the employer as well as the insurance. Only after his sick leave ceases to exist and he is on loss of pay, insurance company will pay him.
For how long will you be paid a supplementary salary?
The company may pay you until you find a job or you recover and resume to work. In case you are redundant for 10 years or so, you will still be compensated. It is important that you mention 60 to 65 years of age, if you want to enjoy the benefits of it till your retirement age. Incase you mention 40, and you are unable to get any benefits after this age. Carefully, consider the age you will mention in the form.
About the author:
Kirthy Shetty, Expert Author, Platinum status. For more information on: Income Protection
Get more information on: Payment Protection Insurance
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