Consider All Details before Finalising on an Insurance Policy

Any illness can have adverse effects on your life. Everything is affected, from your family to your finances especially if the illness is prolonged or terminal.

In such a situation, it is important to think smartly and plan for the future of not just yourself but those dependent on you. life insurance plays a very important role in securing not just yours but your families future. Today there are ample of choices available when it comes to insurance. From income protection insurance, life insurance to disability insurance you can select an insurance that befits your individual situation.

These policies and insurance plans are available through all major insurance companies and can be easily availed. You can also opt for an agent to help you get a life insurance or disability insurance. Sometimes you can even avail insurance policies via your superannuation funds. But the amount of cover may be limited.

Illness and disability can strike anytime without any warning and hence it is important to prepare for the future as best as we can. Disability insurance or even income protection insurance is a very good way to secure your financial future.

Income protection insurance will cover up to 75% of your salary before your disability. This is a good option for people as it lets you to continue receiving money at regular intervals decided by you. It also means you do not have to make any drastic lifestyle changes and sacrifices.

Discuss the pros and cons of the disability insurance cover or the income protection insurance with your agent before finalising on either. However it should be known that in comparison to a life insurance policy, income protection insurance is expensive.

There is also usually a waiting period between claiming and getting your first payment the longer the 'no claim' period, the cheaper the premium. The premiums are tax deductible, but the income stream paid out by the policy is taxed.

It is important to note that there is a lot of variation from policy to policy and hence when choosing disability insurance or life insurance, it is important to go through all details. Everything from the definition of disability mentioned in the insurance policy needs to be taken into consideration to ensure you get the highest benefits from your choice of insurance cover.

Some policies automatically renew while other require you to renew them. At times, if you develop a condition or disability that could lead to a later claim the insurer may even choose not to renew the policy. Hence it is very important to consider all aspects before finalising an insurance policy.