Income Protection Insurance is only available to the holder after he or she has been out of employment for a period of time, this is called the deferred period. You as the holder get to choose what deferred period you want when you decide to take out your policy, either four, thirteen, twenty six or fifty two weeks. For instance, if you choose a deferred period of four weeks, that means, you will have to have been out of work due to some illness or injury for four weeks before you are viable for income protection benefits or payments.
It advisable though that before selecting a particular deferred period, you should check if your employer offers some sort of sick pay and for how long, this might just save your insurance claims for a rainier season. The cost of income protection is dependable on a number of factors such as age, health, lifestyle, job and family medical history. The older you get, the more your premium rises since you are more likely to get sick. If your income reduces, so does your payment, the higher your income or wealth, the more the insurance will cost you.
Your job affects your premium since some professions are more exposed to risks than others are, as such most income protection insurance companies categorize jobs according to how risk related they are. For example, an accountant, chemist or banker pays less premium amounts compared to a hairdresser, electrician or plumber since the latter are believed to hold fewer risks than the former category. On the other hand, a prison warden or miner can be denied this kind of cover on the grounds that his or her job hold too high risks, Apart from that, the other things that impact how much your insurance cover costs you, are the amount of your cover, your preferred deferred period and the length of your policy choice.