Income Protection Insurance Policy Document – What To Look For

income-protection-insurance-policy-document-example1 Income protection insurance is a personal insurance product that is meant to provide financial relief in case you are unable to work following an injury or illness. When taking out this type of policy, the insurance provider will probably give you an income protection insurance policy document. This document provides the details of your policy and should be carefully read and understood when buying your policy. Some of the critical information that will be provided in your insurance policy document includes:

General information

An income protection insurance policy document will state who is insured, the time period that the policy provides coverage and the benefit period in case a claim is made. It also provides details the income amount that is insured and the coverage limits that apply to your policy.

Definitions

The section of your income insurance policy document that details the definitions of the terms used in your policy is critical and should be given careful consideration. For instance, since you will be covered against permanent disability, it is important to understand the definition provided for permanent disability. Note that when making a claim, your will have to fully satisfy this definition in order to receive your income protection benefits.

Coverage and exclusions

Your policy document will also provide the conditions or situations covered by your policy as well as the possible exclusions. For instance, certain medical conditions or personal circumstances may be excluded from your policy. Pre-existing medical conditions such as diabetes or mental illness may be excluded from coverage. In addition, typical income protection policies in Australia do not cover against unemployment or redundancy.

Conditions

It is important to understand what the insurer’s responsibilities are as well as your responsibilities as the customer. For instance, you will be required to make premium payments based on an agreed payment plan. The income protection insurance policy document will also outline the different circumstances that could lead to cancellation of your policy, such as failure to renew your policy or pay your premiums.

Claims

Your policy document will also provide the steps you need to take when you need to make a claim, visit us for more information. For instance, your insurer may require you to provide notification of your disability within a given amount of time. Note that the waiting period you chose will also affect your claims process. The policy document will also provide information on the documentation you will need to have with you when making a claim, including current medical reports.

Additional benefits

Many insurers provide addition benefits together with the basic income protection cover. For instance, your policy may include a redundancy cover, which waives your premium payments and pays your mortgage for a given period in case you become involuntarily unemployed.

Individual insurance policy documents differ based on the insurer and the insurance package you are receiving. It is advisable to read through your income protection insurance policy document and get expert advice from your financial planner. Although reading through an insurance policy is probably not your cup of tea, it will help to ensure you are getting adequate coverage and the best terms.

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