Plant And Equipment Insurance Online :: Articles

DIY Review Checklist for your Income Protection Insurance

DIY Review Checklist for your Income Protection Insurance

DIY Review Checklist for your Income Protection Insurance
If you have an income protection insurance plan already - or are thinking about buying one, then you need to be aware that these policies require regular maintenance and careful scrutiny to ensure that they adequately meet your needs. Unfortunately, many people purchase income protection insurance policies only to find out about their shortcomings at claim time.
Whilst a regular review both of the level of income protection cover that you own and the price you are paying for it are both important, there are some other more critical issues that need to be addressed to ensure that the piece of mind that your income protection insurance policy brings you is not merely a false sense of security.
This does not suggest that your insurance agent or broker isn't looking out for your interests but, if you are unfortunate enough to have a claim on your income insurance policy, it is you that has to live with the consequences of the decisions you make. Possibly for the rest of your life!
Here's a quick list of things that you should be checking.
Insuring your most valuable asset
Image for Insuring your most valuable assetWhile many people would consider their home or their car to be their most valuable asset, it's your ability to earn an income that is most important in shaping your financial future. Statistically, two thirds of working Australians will suffer an injury or illness that will sideline them for 90 days or more. The majority of these people would not be able to pay their mortgage or meet car finance and other loan commitments without adequate income insurance.

a.) What do I have to do to qualify for a claim?

Seems like a simple enough question ... you have to be disabled ... but there is a substantial difference from one policy to the next as to what constitutes being disabled. Consequently, there are many, many circumstances where some policies will deem you disabled and others will not. Some have "income- based" definitions, others use "duties- based" definitions. Some have "own- occupation" disability definitions, others define disability as an incapacity to perform "own or any other" occupation.
It is therefore of utmost importance that you understand exactly how your policy defines the term "disabled" and whether it's the most appropriate in your financial and occupational circumstances.

b.) Does the policy provide adequately for longer term disabilities?

Some policies pay lifetime benefits and others cut out after one or two years.
Some policies index benefits to inflation in the event of a claim whilst others do not, resulting in the erosion of the buying- power of those benefits over time.

c.) How is the monthly benefit calculated?

It may be that the amount you insure is an "agreed value" but, in many cases, the amount you may receive when you claim may be limited by your earnings leading up to your claim.

d.) How long will I have to wait before I receive my first claim payment.

You may have a policy excess of 7, 14 or 30 days. Your policy should also specify the frequency of payments, e.g. weekly in arrears, monthly in arrears, etc.
For example, if a policy has a 30 day excess and pays monthly in arrears, you will need to wait at least 2 months for your first claim payment.

e.) How will the policy deal with partial disability?

Some policies require you to satisfy their definition of total disablement before being eligible for partial disability benefits - meaning that benefits during a recovery period may be forthcoming whilst no benefits would be payable for degenerative disorders such as disc disease and many illnesses.

f.) What if my circumstances change?

Where available, the policy of choice is one that is guaranteed renewable and non-cancelable by the insurer ... irrespective of any changes to your health, occupation, future claims or other factors.

g. Can the insurer cancel my policy?

If you are ever unfortunate enough to have an income insurance claim, it can become extremely difficult to find another policy, even many years after a full recovery. So you should demand a policy with continuity for the rest of your working life.
In closing, it should by now be apparent that ensuring you have the best income protection insurance for your money is not a hit-and-miss affair. The cost of getting it wrong can be devastating financially.
This check list is in no way comprehensive and, before entering into an insurance contract of any kind you should seek professional financial advice.

Published: Thursday, 12th Aug 2021
Author: 258


Equipment Insurance Articles

What does plant and equipment insurance cover? What does plant and equipment insurance cover?
Plant and equipment insurance is a specialized form of coverage designed to protect the tools and machinery that businesses rely on for their operations. This type of insurance typically covers various assets, including construction machinery, agricultural equipment, and industrial tools. By safeguarding these critical assets, you can ensure that your business continues to run smoothly even in the event of loss or damage. - read more
The Factors That Affect Plant and Equipment Insurance Premiums in Australia The Factors That Affect Plant and Equipment Insurance Premiums in Australia
Plant and equipment insurance is a specific type of policy designed to protect the tools, machinery, and equipment that businesses rely on for their operations. This insurance safeguards against various risks, ensuring that your essential assets are not a financial burden during unforeseen circumstances. - read more
The Importance of Cyber Risk Management in Modern Business The Importance of Cyber Risk Management in Modern Business
Cyber risk management involves identifying, assessing, and prioritizing potential risks to an organization's digital assets and implementing measures to mitigate these threats. - read more
The Importance of Reviewing Your Caravan Insurance Policy Annually The Importance of Reviewing Your Caravan Insurance Policy Annually
A caravan insurance policy is essential for protecting your investment against various risks, such as theft, damage, and accidents. However, your insurance needs may change with time, and your current policy might not offer adequate coverage anymore. That's why it's essential to review your policy at least once a year and make the necessary changes to ensure it still meets your requirements. - read more
Understanding Livestock Insurance: What Aussie Farmers Should Know Understanding Livestock Insurance: What Aussie Farmers Should Know
In the vast and diverse landscapes of Australia, livestock farming stands as a critical pillar of the agricultural sector. From the cattle stations of the remote Outback to the dairy farms dotting the greener pastures of Tasmania and Victoria, Australian farmers rely heavily on their herds and flocks for their livelihood. The health and well-being of these animals not only impact the economic stability of individual farms but also contribute significantly to the nation's food security and export earnings. - read more
What does plant and equipment insurance cover? What does plant and equipment insurance cover?
Plant and equipment insurance is a specialized form of coverage designed to protect the tools and machinery that businesses rely on for their operations. This type of insurance typically covers various assets, including construction machinery, agricultural equipment, and industrial tools. By safeguarding these critical assets, you can ensure that your business continues to run smoothly even in the event of loss or damage. - read more
The Factors That Affect Plant and Equipment Insurance Premiums in Australia The Factors That Affect Plant and Equipment Insurance Premiums in Australia
Plant and equipment insurance is a specific type of policy designed to protect the tools, machinery, and equipment that businesses rely on for their operations. This insurance safeguards against various risks, ensuring that your essential assets are not a financial burden during unforeseen circumstances. - read more

Insurance News

Business Relief as Insurance Rates Decline Worldwide Business Relief as Insurance Rates Decline Worldwide
11 Feb 2025: Paige Estritori

In a new development that could signal relief for global businesses, the latest data from Marsh's commercial price monitor indicates a broad decline in insurance rates during the last quarter of 2025. This trend is especially marked in the Australia-Pacific region, which experienced an 8% reduction, making it the standout market globally. - read more
Perth Construction Firm Penalised for Insurance Lapse Perth Construction Firm Penalised for Insurance Lapse
11 Feb 2025: Paige Estritori

A construction company in Perth has been penalised for initiating building works without securing the legally-required home indemnity insurance, resulting in a $3500 fine and an additional $736 in costs. - read more
Stringent Conditions Imposed on Workers' Compensation Self-Insurer Stringent Conditions Imposed on Workers' Compensation Self-Insurer
11 Feb 2025: Paige Estritori

A major property company in New South Wales has come under intense scrutiny following a recent evaluation of its workers' compensation system. The State Insurance Regulatory Authority (SIRA) found several compliance and claims management discrepancies in the self-insurance operations of ISS Property Services. - read more
Queensland's Persistent Flood Woes: A Call for Resilient Rebuilding Queensland's Persistent Flood Woes: A Call for Resilient Rebuilding
05 Feb 2025: Paige Estritori

The recent floods in northern Queensland have left a significant mark, with the Insurance Council of Australia reporting 1,435 insurance claims following the heavy rains. As the weather slowly begins to clear, residents of Townsville have started returning home, heaving a sigh of relief as the city narrowly avoided severe flooding. - read more
ACCC Scrutinizes Major Motor Insurance Mergers ACCC Scrutinizes Major Motor Insurance Mergers
05 Feb 2025: Paige Estritori

The Australian Competition and Consumer Commission (ACCC) has opened a detailed examination into significant mergers in the motor insurance market. The acquisitions under review include Insurance Australia Group's (IAG) endeavor to acquire RACQ Insurance and Allianz Australia's agreement to purchase RAA Insurance. - read more

Your free insurance quote comparison starts here!
First Name:
Postcode:

All quotes are provided free (via our secure server) and without obligation. We respect your privacy.

Knowledgebase
Underwriting:
The process by which an insurer determines the risk of insuring a client and decides the terms of coverage.