Income Protection Insurance Due To Loss Of Job – Redundancy Plans

income-protection-insurance-due-to-loss-of-job-example1 Income protection insurance in Australia is different from what is offered in other countries, such as the United Kingdom or United States. In Australia, companies do not provide benefits for redundant workers. Income protection insurance due to loss of job can only be provided by general insurance. The Australian market provides income protection for policy holders who suffer an illness or injury and are unable to work for a given period of time. When applying for income protection, it is important for policy holders to be aware of this fact. However, the situation is not entirely hopeless for people who have lost their jobs. General insurance have policies that may waive premiums in the event that the holder loses his or her job.

Loss of job relief by general insurance

The law makes it clear that insurance companies cannot provide redundancy cover to people who have lost their jobs. However, under general insurance, such persons can get benefits to help ease the financial burden. General insurers offer products that can provide a payment benefit to cover a specific period of time. This benefit is offered once it has been established that the worker lost their job due to other reasons not related to his or her work performance.

Redundant workers taking out such a policy need to be aware of these restrictions and terms. These policy features will differ from one insurer to the other. There are those who are more lenient than others. It is imperative that workers take a keen look at what they can and cannot be covered for. Most will not allow policy holders to receive any income while on claim.

Redundancy features under income protection

There are particular features and benefits offered by insurance providers in the event that a policy holder loses his or her job.

Unemployment benefit: under this plan, the provider will cover mortgage repayments in the event that the policy holder losses his job for a particular period of time. In most cases, the insurer insists that the mortgage loan should be taken out with that same provider.

Unemployment premium waiver: premium payments will be waivered during the time that the policy holder is unemployed. The waiver only covers a specific period of time, which differs from one insurer to another.

Facts about income protection

To maintain their lifestyle, most people rely fully on their income. Your ability to earn an income therefore needs to be protected. Losing your income can lead to serious financial hardships. A vast majority of Australians believe that their income protection insurance can cover them in the event that they lose employment in any way besides an injury or illness. This may be true in other countries, but not in Australia. Income protection will provide a stream of income, which is often 75 percent of your salary. However, policy holders must have employment that they will return to once they get better.

General insurance offers relief to persons who have lost their jobs. This can come in handy to help one make the necessary arrangements which includes searching for another job or getting into business. Visit us for more info regarding on Income Protection Insurance when you lost your job.

Other Related Income Protection Insurance Blog Posts: