How Long Will Income Protection Pay Your Income for?
Understanding what the benefit period of an income protection policy.
Income protection will pay you an income should you not be able to work due to sickness or accident.
There are many different variables to income protection and each of these variables have an effect on what you are covered for. Some of these variables include
- Waiting period
- Benefit period
- Amount you can be covered for
- Payment structures
- Tax on income protection
- Occupation
- Evolution of income protection
In this series, I’m going to break down into bite sized chunks these different variables and this will help you to understand what you are paying your insurance for.
Benefit Period
The benefit period is the amount of time the policy will pay you an income.
This period can be anywhere from 1 year to age 70. The longer the benefit period is, the more costly the policy will be. For instance, if you have a policy that has a benefit period of 2 years, it will me a lot cheaper than a policy that will cover you to age 70.
So for instance, should you find yourself in the unfortunate position where you end up on claim and you have a benefit period of 5 years, the income protection policy will pay for 5 years or until you are able to go back to work.
If you are interested in finding out more about income protection or if you have any questions, send me a message and we can have a obligation free consultation.
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