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There are numerous kinds of insurance policies available to you. One of these policies, maybe one of the most important ones is the income protection policy. It can help you protect yourself and your family from any financial inconveniences.

The income protection is the type of policy that assures you financial stability in case you suffer from an injury or illness that renders you unable to work. In case you have an accident or have a medical condition that stops you from working, then the insurer has to pay you a fixed percentage from your salary monthly, until you are well and able to go back to work.

If you are not an employee, but your own employer, there is nothing to worry about because you can still buy income protection insurance. Both ways you can recover from your illness or injury without having to worry about financial problems or how you are going to meet all your financial obligations.

If you have suffered from an accident or have an illness that withholds you from working, then after a waiting period, you will receive a monthly benefit as a result of the income protection policy that you have purchased. The waiting period and also the period of time in which you will receive the money is decided by you and your insurer. The amount of money that you receive is usually a percentage of your salary, normally seventy- five percent.

Income protection is also beneficial to people who are self employed. Imagine if you are self- employed and you suffer an accident or have an illness that withholds you from working for a period of time. Your income will be ceased immediately in this case. In this case an income protection policy will mean the difference from a financial struggle or a peaceful recovery.

There are not two income protection policies alike because there are some important factors that determine the expensiveness of your policy. One of these important factors is your occupation. The job that you have plays a very big role. Another very important aspect as well that is considered when buying an income protection policy is the waiting period before receiving your monthly pay. As smaller the period is, as expensive the policy will be.

Moreover, insurance brokers also take into consideration the period of time you want to receive your monthly benefits. For example if you decide to set the period of two years than you will pay a lot less then if you had chosen to receive the benefits over a period of sixty five years.

Being a smoker or not is another aspect that insurance brokers take into consideration when purchasing an income protection policy. If you do not smoke, then your policy will be less expensive as opposed to that of a smoker.

For more resources about Income protection or even if you want find great pieces of advices regarding Income protection please visit this weblink http://www.k2wealth.com.au

For more resources about Income protection or even if you want find great pieces of advices regarding Income protection please visit this weblink http://www.k2wealth.com.au

Article Source: ArticlesBase.com - The Role of an Income Protection Policy