Income Protection Insurance (IPI) is an especial type of life insurance which is mostly offered for physically impaired and critically injured person. Under the life insurance policy holders can make sure economic protection for their family members and dependents. Income Protection Insurance is mostly available in New Zealand, Australia, United Kingdom, Ireland, and South Africa. Let’s find some particular benefits and restrictions of income protection insurance.
Benefits of Income Protection Insurance (IPI)
Income protection insurance policies offer a sort of benefits to the policy holders who are victim of sickness, illness, and accident. You can purchase income protection insurance policy to get the following benefits.
- Income protection insurance policy offers policy holders benefits regularly (weekly or monthly). Purchasing the insurance policy you can make sure economic protection for your family members even you are critically injured and ill.
- Under the life insurance policy, policyholders can get benefit until the earliest of their death, retirement, and recovery of health.
- Benefits of income protection insurance policy are free from federal tax. Beneficiaries can enjoy the benefits of income protection insurance policy without having any tax.
- Any life insurance company has no right to refuse and cancel the premium and benefit of income protection policy.
Restrictions of Income Protection Insurance (IPI)
Income Protection Insurance has some restrictions, terms and conditions. A number of restrictions can affect policy holders’ benefits and premiums. The most common restrictions of income protection insurance policy are:
- Income Protection Insurance (IPI) is only available for physically impaired and critically injured policy holders. And it is confined within some particular countries including UK, New Zealand, Ireland, and Australia.
- Benefits aren’t payable for the physically restricted persons who have been injured due to drug addiction and criminal activities.
- The deferred of income protection insurance is quite long.
Although income protection insurance policy has some restriction, it is a unique option for physically impaired and critically injured persons.