Income insurance
Income insurance can be defined as the insurance cover given to your monthly outgoing loan installments such as your monthly mortgage repayment installment, car loan installment and other such type of outgoing repayment installments.
Importance of Income Insurance:
Income insurance is vitally important for you. As you have to work hard throughout the month to earn money and you would not like to a pay part of it as a levy while making some repayments. And most important thing is that you have to make an additional provision from your personal funds to meet your other major monthly expenses like educational expenses of your children, utility expenses, food bills, fuel expenses and other sundry house hold expenses. Some times you have to meet these expenses either from your bank saving account or debt.
Benefits of Income Insurance:
Some times in life you become seriously ill or you meet with an accident. Even worst happens with you like you loose your job through from which you earn most of your money. Under such circumstances if your income is insured then you can get up to 75% of your aggregate income per month till the time you once again find a job to stand on your feet. And this is tax free income you get to replace your monthly remuneration. Moreover this income insurance policy can help you till your retirement age or as long as you are able to continue it. With this policy in your hand you can go for multiple and various claims for the tenure of this policy, like compensation claim due to absenteeism owing to your prolong sickness which is called as Statutory Sick Pay, or other allowance like job seeker allowance etc. This type of payment helps you to make up your per month income close to your usual monthly salary. But you can't claim any amount you would like as there is certain maximum limit for this claim benefit. Once your claim is approved you are directly paid this money by the income insurance company and it rests on your discretions as how to make further expenditure.
How Income Insurance policy works:
You can go for your unemployment claim if you don't find any other job within at least 30 consecutive days. Only after that you can submit your claim. This claim will then be assumed as a backdated claim from the day you remain unemployed. For an instance if you loose your job on the 1st date of any month and you get it back on the 30th day of that particular month you are entitled to receive the claim amount from the first date of that month to the 30th day of that month, provided this claim should not extend more than 30 consecutive days of that month. You won't get any money for the period after 30 days, since you regain your employment back on the 30th day. This policy does not require any medical check up as this a shot term policy and also some companies cover dangerous professions in to it.
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