Income protection is the financial security against the unexpected future. It is the buying of right financial services as per your requirements. Income protection insurance is your support if you happen to suffer on financial part due to prolonged health or unemployment issues. An example of this can be: Suppose there is a working couple with two minor children and some considerable amount of loan with the father who earns $45000 annually and mother earns $15,000 in part time job. Further, father has to discontinue his job for some period due to heath concerns like illness. If the couple has Income protection cover, the insurance company will pay them certain fixed amount (which will be fixed as per the policy) which will help the couple to pay the loan and meet the daily expenses and the benefits will continue till the father returns to work.

The companies dealing in providing the Income protection insurance generally ask the following information from you as mandate apart from other details:

Medical information: Companies require the medical information in relation to any illness or injury which you suffered in past or are going through in presence. In short, your medical records serve as valuable information in deciding about number of things including the premiums.

Duration of plan: Again important information on which company need to decide is the time duration of plan for which the premiums are to be paid or the benefits accrue to the person covered under Income protection insurance.

Reasons of unemployment: The reasons for persons to leave job could be many. Voluntary retirement is one of them, other being not getting the job opportunity as not able to match the job criteria.

In short, it is necessary to provide the correct information to the company, as it let it to decide the best Income protection cover for you. Insurance premium under policies involves some common factors like the age of the prospect policy holder, health and occupation status, monthly insured amount and the total period for which benefits need to accrue.

Companies have more than one Income protection cover plan as per the situations for which the need for such plans may arise. So before taking any policy, it is recommended to go through the terms and conditions in detail as no policy is same in all regards of benefits, the maturity period etc. and the benefits under Income protection cover may change in between depending on the clauses defined in the particular policy. Even after the policy starts, it is in the interest of policy holder to review it from time to time, it will make sure that the policy corresponds to the with the earnings.

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