Income protection cover: Tax free earning when sick and unemployed

Income protection insurance ensures a steady flow of income when the policyholder is unable to work owing to accident or illness. Although insurance providers may offer different income protection cover terms, nonetheless, all types of income protection policies pay the policyholder 50 to 65 percent of his/her monthly earnings until the policyholder is fit enough to return to work.

Benefits of income protection cover

Accidents and sickness can occur any time. In the event of severe illnesses and accidents, a person may be incapacitated for several months and in the worse case for years. While sick pay is offered by numerous employers to their permanent employees while they are recuperating, in most cases the financial benefits are available only for a short time. The financial hardship that a person is likely to experience during the unemployment period can be compensated to some extent by income protection insurance. The financial benefit that the policyholder receives during the period not only helps to maintain the lifestyle of the person but also offers money to clear outstanding mortgage debts and other loans. Moreover, regardless of the amount of monthly or weekly benefits received from the insurance provider, the income is free from tax. Another advantage of this insurance product is that benefits can be claimed multiple times. Even if misfortune strikes you several times, you are eligible for the benefits, provided you satisfy the terms of the policy. Many insurance providers also offer proportionate benefits to encourage policyholders to take up lower income jobs.

Conditions of income protection cover

Income protection cover is often included in life insurance plans. You can even avail a separate income protection policy to replace the income loss that may occur when an accident sickness unemployment insurance prevents you from receiving your normal salary. Benefits of the policy are limited to a certain percentage of the normal income of the policyholder. Usually a policyholder can receive up to 70 percent of his/her normal earning as financial benefits. However, the percentage of the benefit may be lower for people who earn higher incomes. The benefits may be lower if the policyholder is eligible for any other benefit from the employer or the state. While calculating the premium of the policy, the insurance provider takes into account the occupation, age, retirement age, amount of benefit and health condition of the policyholder. As this is a long-term insurance policy where policyholders are eligible for receiving benefits up to the age of retirement, the underwriting procedure is usually strict and lengthy.

Welcome to accident sickness insurance - Meet your living expenses in the event you are unable to work through accident sickness unemployment insurance. The main aim of ASU is to meet your financial outgoings and help maintain a income protection cover.

Source: http://genecast.com/Finance/Insurance/income-protection-cover-tax-free-earning-when-sick-and-unemployed-59740.html

acc tournament big ten tournament big east tournament 2012 solar storm solar flares spanx aurora borealis