How to Compare Income Protection Insurance Australia wide

There are a few things to consider when deciding to compare income protection insurance in Australia. Income protection insurance has become an important product in the management of personal risk. Since the GFC, there has been an increase in income cover purchased in Australia. Many Australians now realize the importance of income cover, but often find the task of selecting the right type of policy difficult.

Income protection pays up to 75% of your income in the event of suffering from illness or injury. It can help pay for your bills, and ensure you have enough funds to live on while you focus on recovering.

Comparing income protection insurance Australia wide

Below are some points to remember when purchasing income policies.

* The type of policy - There are three main types of income protection available in Australia. These include, agreed value, indemnity value, and guaranteed agreed value.

Agreed Value is where your benefit is based on income earned before your application.

Indemnity value is where your benefit is based on financial evidence required at claim time.

Guaranteed value is only offered by a select number of life insurance companies in Australia. It is a variation of the agreed value income protection policy type where your income is assessed at application time, supported by evidence you must provide such as tax returns. This means that there is no uncertainty at claim time as to the benefit amount, speeding up the claim process.

* Waiting period - A waiting period must be selected when you purchase an income protection insurance policy in Australia. It refers to the amount of time you are willing to wait until your benefits will start to be accrued.

Your selected waiting period may vary depending on the amount of funds you have access to when you become ill or injured (like paid sick leave and personal savings), but they usually range from 14, 30, 60, 90 up to 720 days.

* Benefit period - A benefit period must also be selected and refers to the length of time you would like your benefit period to last following the waiting period. A typical benefit period is usually 2 years, 5 years, or up to age 65.

Choosing the right income protection insurance policy in Australia

When you compare income protection insurance policies it really depends on your personal situation. There is no one size fits all when it come to policies, that's why it is important to take into consideration the above points when doing your research.

Tailor income protection insurance Australia to your needs

If you are in doubt about the right policy for you, speak to a qualified financial adviser. An adviser can help tailor your insurance needs by comparing income protection insurance Australia wide and recommending a policy which suits your particular situation.

Exclusive Offer! Call xLife on 1300 135 205 today and
save up to 20% on your first year's income protection premium.

April 2011