What is Income Protection and its types
Income Protection is an agreement between an insurance company and policy owner. It is also known as monthly profit. People get this insurance plan for the protection of their income. Some companies were offering this plan as permanent health insurance policy. In this insurance plan the insurance company is responsible to pay you when you are not able to work. It may be due to your illness or injury. There are basically 3 types of cover. The company will pay you until your death, your retirement or you have joined your work again. In this article we will tell you about the different types of income protection and how to select income protection plan for you according to your financial needs.
Types of Income Protection
There are two major types of income protection plans. These plans are decided on the base of time of coverage.
Short Term Income Protection Plan
As the name indicates this plan is for short time. The other name for this plan is unemployment, accident or sickness income protection plan. This plan normally consists of 2 years. Some companies are also providing other specific income protection plans like
Mortgage Payment Protection Insurance Plan
In this plan the insurance company is responsible to pay for the cost of mortgage within a specified period of time.
Payment Protection Insurance Plan
In this plan the insurance company is responsible to pay for the cost of debt to escape you from default.
Long Term Income Protection Plan
In long term income protection plan the company is responsible to pay you for long time when you have some problems in your life. It may be due to you injury, illness or unemployment. The insurance company also gives you financial assistance to revive your business. This insurance plan is viable until the end of policy.
How to select Income Protection Plan
You should keep this points in mind while you are selecting income protection insurance company.
First of all select time frame for your insurance plan
Look at your financial needs
Compare the benefits provided by different companies
To get free quote Click the link given as Lexelle Insurance Company