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Life Insurance Vs Income Protection Plans

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					          Life Insurance Vs Income Protection Plans




              Basic Differences Between The Two
For middle class families, the most           insurance and income protection plans
priced asset they have is the family          protect your loved ones from
head, who is the main breadwinner of          unforeseen economic catastrophes. Both
their house. If the chief earner of a         these policies come with unique
family falls prey to a sudden calamity        features and differences. Policy holders
like illness, physical injury or accident,    must learn to differentiate between the
it may interrupt the main source of his       two.
family's revenue. In such cases, both life


    Life Insurance Vs Income Protection - What Are They
Income protection insurance is also           suffering from grave diseases do not
known as disability insurance. It is          qualify for a life insurance. However, an
offered to the citizens of the United         income protection plan is quite the
States, United Kingdom, Australia, New        opposite. Any working professional
Zealand and a few other selected              (below 60 years of age) can apply for it
countries. The policy is either run by a
banking institution or offered by the         Monthly Premiums
employers of a corporate firm. It covers
the recovery expenses and bills of an
employee, in the event of a sudden
                                              Life insurance plans are long-term
accident, injury and physical or mental       payment plans that call for fixed
disorder that has left him crippled for       monthly, quarterly or yearly
rest of his life. Contrary to this, a life    premiums and range from 20 to 25
insurance policy provides financial           years. They are complicated in
security to a person's family members,
in the event of his sudden death. Almost
                                              structure, include higher premium
every country in this world offers such       amounts and have high rates of
plans to their citizens. In order to invest   interests. Both premium as we as the
in an insurance policy, the candidates        maturity amount is tax deductible.
should meet a specified criteria set by
the policy setters. For instance, senior
citizens nearing death or patients
Page 2 of 3                            Benefits & Claims
                                                                Our kids’ favorite
                                                                Christmas joke:
              A disability insurance proprietor can      can claim for the entire amount after
              claim for benefits, when he reaches a              What the policy person
                                                         the death of do you call aholder, except
              state where he can no longer continue              who that involve intentional
                                                         for in cases is afraid of Santa Claus?
              with job or make money through                     or suspected
                                                         suicide Claustrophobic!murder of the
              sources other than his primary line of     owner. If the possessor is still alive by
              employment. Normally, this plan            the time this policy matures, he shall
              covers approximately 50% to 75% of an      get the entire money in place of the
              individual's gross income and may          beneficiary.
              provide more, if the owner has paid
              higher monthly premiums. A claimant        So, these were the basic differences
              does not get benefits if he inflicts       between the life insurance and income
              intentional injuries upon him.             protection plan. If you wish to know
                                                         more regarding specific terms and
              The benefit associated with a life         conditions, you may consult a financial
              insurance is known as the death            consultant.
              benefit. It is offered to an irrevocable
              beneficiary or the nominee appointed
              by the policy holder. The beneficiary

				
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Description: For middle class families, the most priced asset they have is the family head, who is the main breadwinner of their house. If the chief earner of a family falls prey to a sudden calamity like illness, physical injury or accident, it may interrupt the main source of his family's revenue.