Copyright (c) 2014 Kerrie Peacock
The workforce within the service industry (white collar jobs) in Australia has been experiencing a much greater growth as compared to the workforce in production industries (blue collar jobs), which has seen significant decline in numbers. The Australian Bureau of Statistics (ABS) records that the proportion of Australians within the service industry increased to 77% by August 2011, compared to the proportion of Australians working in the production industries that reduced to below 23%. Therefore, it is critically necessary for insurers to offer suitable income protection cover to this growing group of white collar workers.
A recent report by Canstar, published in April 2014, offers useful insights on the features offered by the best income protection insurance in Australia. This report reveals the features included in policies for the age group 30 - 45 years, a key category of policy holders where majority of the working age population may be found.
Specified Injury And Unemployment Benefit
Specified injury and unemployment benefit are standard features provided by all four of the top-rated income protection covers as analyzed by Canstar. Basically, unemployment benefit provides a regular income stream worth approximately 75% of your previous income, during the time when you are disabled and unable to continue working. This serves to cater for your expenses, despite lacking the capacity to earn a regular income.
The specified injury feature in income protection insurance ensures that you can claim your benefit payment in case a specific injury occurs. Hence, coverage would not apply for injuries that are not specified in your policy.
Specified illness is an optional feature offered in most of the four top-rated income protection covers for both males and females aged 30 to 45 years and in white collar jobs. This feature provides coverage for specific illnesses that may lead to lodging of claim.
However, some of the 4 top-rated income protection covers (based on Canstar's rating) don't offer the optional feature for specified illness. Therefore, you should carefully evaluate any income protection cover to determine whether such a feature is available, especially if you are keen on getting coverage for particular illnesses.
An accommodation benefit provides expense payment accommodation fees for hospitalized policy holders, during the time when they are disabled. This is an extra benefit apart from the standard unemployment benefit that you would be receiving. Apparently, almost none of the 4 top-rated income protection products offer this feature.
The only income protection plan among the 4 top-rated cover plans provides this feature exclusively to female policy holders.
Another interesting observation concerning the 4 top-rated income protection covers by Canstar, is the fact that most of the highly-rated policies are simply standard covers. This indicates that you might get the best income protection insurance in Australia from standard policies, rather than seeking the premier insurance products that appear to have much more features.
Increasing Claims Benefit
All of the 4 top-rated income protection covers provide an optional feature of increasing claims benefit. Generally, your coverage would decrease as you get older. However, with increasing claims benefit, your coverage would be increased periodically, which would also mean increased premiums. This helps to cater for inflation and increasing cost of living.
Article Source: http://www.abcarticledirectory.com
Kerrie Peacock offers useful insights in selecting the most appropriate income protection coverage in Australia. For more information and advice, log on to www.mecovered.com.au/best-income-protection-insurance-in-australia.
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