Though it is uncomfortable talking about illnesses and accidents, these things may happen to you. The first and most important thing that these unfortunate events will affect is your income. This is why it is very important that you protect yourself from the risks of disability to earn. Having income protection insurance is the best way to protect yourself from the risk of not getting your income due to illnesses, accidents and more. When you are unable to earn because of trauma, illness, accidents, temporary disablement and permanent disablement, you can still receive 75% of your income with income protection insurance. In New Zealand and income protection insurance is tax deductible if your premiums corresponds to the income assessable.

Coverage

Depending on the insurance provider, 50% to 75% of your income will be covered in the event that you are unable to earn due to illness and accidents if you have income protection insurance. The coverage you get for your income protection insurance policy may cover mortgages, debts, and your daily expenses. You can get income protection insurance on a fixed term which is about 5 to 10 years or you can also get a policy for a short period which is only for 12 to 24 months. The amount of insurance needed will depend on the payments considered as income.

Cost

There are a lot of factors that affects the cost you have to pay for your income protection insurance policy. Some of these factors are the length of coverage, the amount of replacement, waiting period, and other additional options. The age, the sex, occupation, and the age when you will retire are also additional factors that will determine how much you will be paying for your insurance policy. You health will also be a very big determining factor if you will pay high amount of premium or not because it can tell whether you will get sick more often or if you are prone to permanent disability due to illness which means you may be a big risks to the insurance provider.

Advantages

There different types of advantages when you have the proper coverage against the risk of being unable to earn due to illness and accidents. Release of premium is one of the benefits that you get with your income protection insurance plan. These benefits may be part of your plan or an extra fee. This will give you the income you need when you are not able to work due to illness or accidents. This insurance can also give rehabilitation benefits and it can help you get a new and better job. If you are still under the sick pay benefit from your employer, then you will not get the benefits from this insurance. If you want to get the benefits, you must first check out from the sick pay of your employer.