Additional Guidelines When Shopping for Income Protection Insurance

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There are basic requirements when shopping for insurance policy, but for income protection, here are more guidelines that you might tend to forget.

What to tell your insurer?

Make sure you disclose every detail about any previous or current medical conditions, as well as diseases that run in the family. Leaving something out may get your claim denied later on. If you have a preexisting condition that you want to be covered, find an insurer that is willing to cover it, but be ready to pay more for lifting the restriction for it.

Be sure to inform your insurer about any dangerous lifestyle or activity, such as smoking, drinking, and substance abuse. They have the right to refuse your claim later on if they find out that you lied during your application. Meanwhile, if you already have a dangerous job, or are sick, you might not be eligible for income protection , unless you’re willing to pay a very high price for it.

How to determine the level of cover that you need?

  • Calculate your current take home pay
  • Deduct the amount of state benefits that you might be able to get
  • Deduct any work-related expenses such as food, travel, and clothing
  • Consider that you might have to pay for additional expenses such as medical equipment or aid

How to shop for income protection?

You can buy IPI either directly from an insurance company or from an independent financial adviser, who will look at all the policies currently on offer and choose the one that suits you best. However, you will have to pay for this advice.

Meanwhile, if you want to buy IPI directly from an insurer, make sure to shop around for the best deal. You may use comparison websites to apply for a quote or talk to insurance experts.

Factors that Affect the Cost of Your IPI

Age. As a rule of thumb, the older you are when you apply for a policy, the more you will pay, as your risk of getting ill increases.

Sex. Men may have to pay more as they are more likely to make claims than women.

Health. If you are healthy, the less you’ll have to pay for your premiums, and vice versa.

Occupation. If you have a dangerous occupation, the more you’ll have to pay.

Lifestyle and hobbies. If you engage in dangerous activities, such as skydiving or car racing, or if you smoke or drink heavily, your premiums will get more expensive.

Waiting period. There’s a waiting or deferred period before you can start receiving your claim after you were off work, which is a minimum of 4 weeks. The longer you set your waiting period to be, the less expensive your premiums will be.

Whether you can perform other types of paid work. Generally, the premiums will be cheaper if you will only be able to make a claim if you’re unable to do any kind of work rather than just being unable to do your own job.

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We do not provide any financial advice relating to insurance or other insurance related topics. IncomeProtectionAdvisor help users get a competitive income protection insurance quote. We do this by working with FSA regulated partners who search and compare insurance policies from dozens of UK insurers. The quote you receive will be based on the information you submit to us. Our service is free and you are under no obligation to accept the quote you receive.
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