Just like when you purchase other types of insurance, it is necessary that you take your time and review all the options before deciding to purchase an income protection insurance. There are several important aspects to consider when comparing available options indeed.
The first thing you need to check is the offered coverage amount. The income protection insurance must cover at least 60% of your current annual income in order for it to be effective. You can also have the coverage amount set at as high as 80% of your existing income.
Next, check the waiting period attached to the insurance policy. The normal waiting period is 14 days – during which you will have to cope with expenses yourself – but some policies come with a waiting period of 30, 60, or 90 days; the longer a policy’s waiting period is, the lower insurance premium you will have to pay.
Last but certainly not least, check the insurance policy’s benefit period. You can enjoy the income protection until you reach the age of 65 years old, or you can opt for the insurance benefit to stay in force for as little as 2 years depending on your needs and purchase budget.