Income Protection Insurance for Mechanics
Because you're reading this, chances are that you are or your spouse is working as a mechanic and you're looking to get income protection insurance. It's a great decision that you just made because it just shows how much you care for your future and that of your loved ones.
However, you also aren't sure how exactly you will be able to get this type of insurance. Don't worry though because we will share with you the essentials of income protection insurance in the following paragraphs. So if you're ready, then let's get started with...
How This Type of Insurance Works
When you have an income protection insurance policy, you will be able to receive regular benefits should you be unable to work because of an illness or an injury. The amount you receive will be up to 75% of your salary. However, keep in mind that there is a waiting period involved before you can receive benefits. Aside from that, you will also receive benefits only within a specific period. We'll discuss more of that below.
Waiting and Benefit Periods
As the name would suggest, the waiting period is the period of time before which you would start to receive your benefits. It may be as short as 14 days, or up to several weeks depending on your policy. If you wish to have a shorter waiting period, you should expect to pay high premiums in the process.
Meanwhile, the benefit period is the length of time within which you will receive benefits. While it's typically up to two years, some insurers may offer benefit periods of five years or more. Once again, this period depends on the price of your premiums. The higher your premiums, the longer your benefit period will be.
Indemnity Vs. Agreed Value Policy
Indemnity and agreed value policies are also two things you should be familiar with. In general, indemnity policy is better-suited for salaried individuals since the value of the benefit depends on the person's average salary. So if you receive a salary increase, so will your average salary and the value of your benefits. It is also more affordable than an agreed value policy.
But when should you choose an agreed value policy? It's more appropriate for business owners or self-employed individuals who may see fluctuations in their income. The agreed value policy protects them by setting with the insurer an, you guessed it, agreed value of the benefit the insured should receive.
Get Income Protection Insurance Today!
Contact us on 1300 793 143 and we will organize you quotes from up to 9 Insurance companies in under 10 minutes. Our consultants will talk you through the process. Contact us today for more details!