Income Protections

Most people take life insurance policy and take less interest in Income protection which is an insurance policy that normally covers your income when you have life misfortunes like accidents, sickness or traumas. Having an income protection insurance is very essential for working people. The policy is meant to help cover you for the period that you are out of work due to an illness or accident. The policy will normally cover you till retirement or to an agreed age depending on the terms. This ensures that your dependants don’t suffer once you are unable to work.

There are different types of income protection insurance policies that one can get depending on their income and preferences. There is the long term income protection that will normally cover you to a certain age, death or until you are good to go back to work. Short term income protection on the other hand just covers you up to a number of years. most firms that take income protection will consider some facts before deciding on the premium you should pay. These facts include:-

- Age
- Gender
- Current health condition
- Your lifestyle
- Your occupation
- The period you choose to wait before being paid.

When taking a cover it is of utmost importance to check and understand the terms and conditions to avoid been surprised when you need to claim.

Income protection NZ has been widely ignored with only about 11% of the income earners. The premiums of income protection insurance NZ are totally tax deductible. The policies in New Zealand cover persons who are aged between 19 years and 61 years and have a source of income. Most of the firms will normally pay up to 75% of your lost income thou there are firms that pay higher on some years.

There are so many benefits associated to income protection. Thou many people always take life insurance its worth remembering that your money or income is more valuable to you when alive than when you are dead