Redundancy Problems Can Be Dealt With Through Income Protection Insurance May 5, 2012
Posted by janey in : financial success , comments closedThe level of unemployment is taking a significant leap and the threat of redundancy proceeds to loom the minds of many employees today. Knowing this, the Australian insurance industry is going through extreme competition. Therefore, a lot of insurance firms are devising strategies to entice workers to buy products that handle redundancy and provide income protection.
This type of insurance plan can in reality be very useful. It can provide a financial support system when workers are confronted with unemployment. It defends workers from defaulting on the settlement of their mortgage, credit card payments, and other financial obligations during times of need.
Redundancy and income protection insurance are generally structured to give monthly payments for a specific number of months. The lengthier the period covered, the bigger the premium. The common moratorium interval for the beneficiaries of this plan is 60 days and the initial payment is provided 30 days after the date of termination of employment. Those who applied and were qualified for this coverage but need to get out of the country for a period of 1 year or more may also be supplied with expatriation benefit. In addition, if the beneficiary passes away within the coverage period, payment for funeral expenses may additionally be extended. If the motive for leaving behind employment is to take care of an immediate relative confirmed ailing, the insurance policy may compensate in this case as well.
Those interested in applying for redundancy and income protection insurance shouldn’t take it lightly, as there can be pitfalls on this coverage. They should make certain that terms are thoroughly understood as certain plans are riddled with exclusions like those against the self-employed or those who have two jobs. They also need to know that income protection and redundancy insurance can’t be applied if the applicant has not had a full-time fixed position over the last 12 months immediately preceding the date of application. The policy will also not apply to those whose work termination was due to a pre-existing sickness, wilful misconduct or the termination of a seasonal project.
Income Protection Insurance can rescue you from financial difficulties. To know more about income protection insurance, visit http://incomeprotectionguide.com.au/
What are the Five Misconceptions That People Have About Life Insurance? May 4, 2012
Posted by janey in : financial success , comments closedProbably one of the topics that most people avoid in conversations is about life insurance. How many times have you tried to avoid dealing with an agent offering you life insurance policies? I’m probably guessing that it is a lot. Do not worry, you are not rude. A lot of other people feel the same way and also avoid insurance agents. This is because most people avoid life insurance topics because they are associated with death and a person’s mortality. It is inherent for us humans to avoid topics dealing with death and therefore it is but normal to avoid life insurance conversations.
However unpleasant the topic maybe, as the head of the family, we have to accept the fact that life is short and discuss the topic of life insurance soon lest we regret it later on in life. When the salary of the family head stops because of his sudden death or critical illness, life insurance provides the much needed financial security. Here we will discuss five misconceptions that need to be cleared so that we can understand these policies better.
Myth 1. If you have a people who are financially dependent on you, only then do you need life insurance. The main reason why people take a life insurance policy is to pay for the financial security of those they take care of – usually children and wife / husband. Are heads of families the only ones who take insurance? No. A person who does not have a family can also take life insurance for various reasons. It could be to take care of aged parents if the policyholder dies young, it could be for the protection of employees if the holder owns a small business or it could be to settle debts, like a home mortgage, when the holder is still alive.
Myth 2. “My employer informs me that I already have life insurance with the company, I’m sure that that is enough”. State laws require employers to insure their personnel and to indemnify loss of a life of the personnel if the death is work related. While it is true that you are covered, employers will usually get the cheap term life insurance quotes which may not be enough to cover for the needs of your family in the event of your death. Also, company-sponsored life insurance policies are only effective during your employment with the company. Once you leave the company for any reason, your life insurance will also be terminated.
Myth 3. “I am young and only need to think of insurance when I am old”. This is one of the greatest misconceptions that need to be busted. It is true that life insurance is available for people of all ages. However, have you seen the cost of insurance as a person gets older? Only if you get life insurance quotes when you are young can you save money for they will be cheaper. When calculating insurability, underwriters give top priority to age and health condition. A younger person is by default healthier and expected to live longer than an older person. Hence, when you compare term life insurance quotes, you will find that it is affordable for younger people that older folks.
Myth 4. Any life insurance policy will do. There are different life insurance policies out in the market today and they differ from each other. The two main types of policies are the permanent life and the term life. Each type of policy has its own advantages and disadvantages and therefore a person must carefully consider each type of policy and decide which one will be best suited for the needs of his/her family.
Myth 5. I need life insurance but do not have the time to apply for one. Several years ago, this fallacy was true for there was no Internet and people had to spend time visiting insurance companies. They also had to wait for the complete underwriting procedure to be finished that included filling out several forms and waiting for a thorough medical exam result to be submitted. Only then will a person be declared insurable or not. These days, those who want to can apply for life insurance online and complete the entire process without leaving their desks and within quick time.
Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on whole life vs term insurance and term life insurance“, visit his site today.
