Things to Know about Income Protection Insurance

There are few things you need to know concerning xLife income protection insurance policies.

The meaning of the term incapacitated when used in reference to this type of policy is critical. Incapacitated refers to a person being unable to work at the occupation they normally work at after an illness or an injury occurs. The person may not be working in another job either. The person covered remains incapacitated as long as they are unable to work at a job that is suited to their skills according to their educational background, and their training experiences.

The benefits from a policy of this nature are rarely more than 70% of the person’s normal salary. The benefits will never be greater than the amount the person made performing their normal job duties. If the person covered starts to work at a part time job, or at a job that pays less money, after their illness the benefits from the company will be lowered accordingly, and sometimes they will cease.

There will always be a period of deferment when a person is injured, or suffers from an illness. The length of the deferment period can be as short as one month, and it can last as long as one year. The longer your deferment period is, the cheaper your policy premiums are.