Insurance, as most of us already know, can have some obvious effects on society. It can radically change the texture of any accident and definitely can change the bearers of the cost of damage or losses. Many analysts say that insurance can increase and encourage fraud, while, at the same time, it can readily mitigate the impact of losses and damages.
There are different types of insurance and one type of insurance that is gaining a lot of popularity nowadays is the Income Protection Insurance (IPI). If you are not familiar with the IPI, this article can help you understand the importance of IPI and how it can mitigate the impact of losing one’s capacity to perform in one’s job. In Australia, for example, if one becomes incapacitated and becomes unable to work due to illness or accident, one will usually find it hard to sustain one’s expenses after three months of inactivity and incapacity.
A typical Australian has the capacity to build the lifestyle that he/she wants to have because of his/her ability to work on an occupation. He can start working at an early age up to sixty five or seventy. Yet, once an Australian loses his capacity to perform his job, more often than not, after three months, he/she would begin to sell some of his/her properties. Incapacitation for work would be a major blow to a typical Australian and would readily affect a person’s lifestyle. For this reason, the IPI has been designed to mitigate the risks of incurring illness or accident that causes incapacitation and inability to work. For this reason, many Australians are looking for the best income protection Australia can offer.
The Need and Suitability of IPI
You may be wondering about the suitability and appropriateness of IPI to a typical wage earner. Well, IPI is basically suitable to the needs of a typical wage earner. Since most wage earners are not immune to accident or illness, and the percentage of being unable to work due to illness and accident is huge in a lifetime, the suitability of IPI for wage earners is very appropriate and obvious. Since the average level of statutory sick pay and incapacity benefits are sometimes way below the normal income of a typical wage earner, there is a need for the IPI to augment one’s income during periods of incapacitation due to illness and accident.
However, IPI policies are unsuitable to those who are unemployed because the benefits that are stipulated in the IPI policies are only available to those who are employed. Likewise, the benefits are only accorded to those who became unemployed due to illness or accident that made the policyholder incapacitated to perform one’s job or occupation.
There are other forms of insurance—that you can avail of if you are unemployed—such as unemployment and sickness insurance policy. You can also avail of Mortgage Payment Protection Insurance.
IPI policies, likewise, don’t cover health insurance, critical illness cover, and death benefits. Instead, you can avail of health insurance or life insurance that is more pertinent to abovementioned needs.Comments Off