With changes and advancements in the economy, the Indian families are also advancing with a better lifestyle. With better lifestyle comes more expenditure. Indian families are worried about providing a nurturing and progressive environment for their kids. Not just the young ones, the income security of elders are also important. For protecting the income of the main bread-earner of the family, Income Protection Insurance policy can be put to use. With unknown changes occurring around in the economy and thus affecting the insured’s ability to work, this policy can be a good protection against it. With changing times and a growing family, the policy can be utilized.
- Insurance of the non-working spouse
Some insurance providing companies provide policies which give extra cover for the insurance if the spouse is non-working. This is handy when the spouse finds it difficult to fulfil the household chores and these policies provide benefits for it. As these chores cannot be quantified, it is very difficult to come to the amount of the benefit to provide. The contribution of the spouse towards the household is difficult to measure. Instead of quantifying the contribution, it can be replaced by the money or cost required if they were injured. Thus, the Homemaker Income protection policy can be applied for this purpose. This kind of Income Protection may not be tax deductible like other standard policies.
- Is shorter waiting period beneficial?
The waiting period is the time period when the insured cannot work because of injury or illness until he/she is eligible to get the benefit payment. The benefit payments are always made in arrears. That means, the payment due will only be received by the end of the waiting period. This waiting time may vary. Choosing the waiting period has the consequence of how long the insured can wait without the income if he/she was injured or ill or unable to work. Shorter waiting time period results in a higher premium. As with a growing family, there is no flexibility of paying the expenses thus, by choosing a shorter waiting period, the benefits can be taken as soon as the insured becomes unable to work.
Guarantee of the insurance cover is as important as the cover. Guarantee lessens the risk associated with the insurance cover. When the insured takes up the cover and he/she is comparatively in good health and his/her family is growing, the person should check for the guarantee of the insurance cover. The insured should check for the statement which states that the cover guarantees to provide protection until the insured pays premium regularly irrespective of the changes in circumstances.
- Cover of pregnancy complications
The Income Protection policy should cover for the growing family. This growing family is usually a long-term process. Even though the pregnancy is uncomplicated, the insured must always consider the need for checking whether the cover provides help if the pregnancy is complicated and thus results in insured’s inability to work. This can be very helpful in the future for a growing family.
The best deal for income?
Before entering into any agreement or contract, it is always better if the individual gets whole-round information about it. After getting plenty of information and a neutral opinion about the insurance policies available and their cost-benefit only, should the individual take up the insurance cover. This will ensure the individual has the best income protection deal which would cover up his/her risks.