Income insurance Dictionary

Income Protection Insurance refers to insurance that requires interruption or reduction of income due to accidental injury or illness as a condition of payment of insurance premiums, especially when the insured person becomes disabled due to illness or accidental injury, loses ability to work, loses income or reduces income, A type of health insurance in which the insurer pays the insurance premiums in installments in a certain deadline.

Overview

In fact, when people talk about health insurance, they mostly like medical expense insurance. Taking the example of the United States, 82% of health insurance payments go to medical expenses. Compared to medical expense insurance, income protection insurance is of secondary importance, but this insurance is one of the oldest types of health insurance. It has been present on the market for over a century. When the insured is unable to work normally due to illness or accidental disability, the insurance may regularly pay income insurance. The risk of income insurance coverage is the risk of loss of income, but on the surface it usually covers a disability that prevents you from continuing to work. If a person loses work capacity due to disability due to illness or accidental injury, the time of disability cannot be determined and the amount of loss of income due to inability to participate at work can be total or partial. What is more serious is that the incapacitated person will have to rely on the income of other family members to maintain their life. In some ways, expenses can be much higher than before; if other family members have no source of income, the consequences will be: Even more unbearable.

Definition of disability

Disability refers to the fixed symptoms left on the human body due to injuries and other reasons, and affects normal life and ability to work. Common causes of disability include congenital disability, acquired illness and accidental injury. Income security insurance does not pay money for congenital disabilities and provides that insurance money can only be paid if the definition of total disability set out in the policy is met.

Characteristics

Insurance that provides compensation for loss of income that occurs when the insured cannot continue working after being disabled, ill or accidentally injured is income security insurance.

Income security insurance can generally be divided into two types, one to compensate for loss of income due to disability due to injury, and the other to compensate for loss of income due to disability due to a sickness.

Payment method

Income protection insurance payment is usually cleared monthly or weekly, and monthly or weekly income compensation can be provided with a constant amount.

Disability Income Insurance payment must be linked to the level of income of the insured prior to disability. To determine the maximum amount, the insurance company must take into account the following income of the policyholder: normal normal employment income before tax; ② non-work income; ③ other sources of income during the period of disability; ④ tax rate currently in effect.

In addition to paying insurance money when the insured is completely disabled, income security insurance can also provide other benefits, including paying cash for residual or partial disability insurance, the future increase in the payment of insurance cover, the cost of living adjustment payment, the disability exemption premium clause and Benefits for transplant surgery insurance, non-disability injury benefits and accidental death benefits. These additional benefits are obtained as special conditions by paying additional premiums.

Payment deadline

The payment period is the longest period during which the income protection policy pays the insurance money, which can be short term or long term, so there are two forms of short term disability and d long-term disability. Short-term compensation is intended to compensate for the loss of income before the body recovers, while long-term compensation provides for a longer payment period. This is generally to compensate the income of the insured who is totally disabled and unable to return to work.