incomeprotection3
Joined: 15 Sep 2013
Posts: 1
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 Posted: Sun Sep 15, 2013 5:27 am Post subject: income protection |
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Many Australians pose questions with regards to income protection insurance. For example do people have to be residents of Australia in order to apply for income protection? The answer is yes, as only those with a permanent Australian residency as well as people in the process of apply for residency will be considered for income protection cover. There may be a waiting period for new immigrants of established income and occupation before they can apply for TPD cover or income protection cover.
For those that travel abroad frequently, will they be covered? Yes once their cover is in place. For those working or travelling abroad will be covered anywhere in the world seven days a week, twenty four hours a day. However, depending on the insurance company, you may be requested to return within a specified time to Australia once you have made a claim, in order to receive continued payments. In circumstances where one applied for income protection and intends living abroad or travelling at the time of application, will need to declare this on their application. Depending on the length of time and the destination, the insurance company may restrict cover or decline the application.
When applying for income protection, are there any medical examinations required? There are usually no medical exams requested if you are under the age of 45 and the cover you are applying for is less than $2.5 million or your monthly income protection benefit is below $6 500 a month. At lower levels of cover, medical may be requested for those over the age of 45. Compare insurers at to enquire if there are any medical requirements stipulated for the amount of cover you require. However, the insurance company may request a medical examination and blood tests if you have disclosed a medical condition on your application form or they may request a doctor’s report.
If the insurance company requests a medical examination and blood tests, the company will arrange for a qualified nurse to visit your work or home at a convenient time that will be free of charge. Another frequently asked question is the type of financial paperwork required. You may be required to produce business accounts, copies of your tax returns or complete a financial questionnaire, which will depend on your occupation, the required sum insured, and if you are self employed or employed by a company.
Most Australian insurance companies offer monthly, six monthly and yearly payment options. When applying for income protection insurance you will be required to submit either a direct debit request, a personal cheque made out to the insurer or a credit card deduction authority. There are two different premium options available that include stepped premiums and level premiums. For example at each policy anniversary date stepped premiums are calculated according to your current age, and will increase accordingly each year, the older you become the greater the rate of increase.
Level premiums on the other hand are fixed at a flat rate and will only vary if the insurance company makes a change to the standard rate level. The younger you are the higher the level premiums will be as opposed to stepped premiums, however, the savings can be quite significant over the long term. All the premiums displayed on income protection insurance direct are stepped premiums. You can request a level premium quote.
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