Most of us know what you earn each month in wages or salary, but you never had time to sit down and figure out just what the expenses of families have taken away every month? You may be unpleasantly surprised when you run the calculations and see the total amount of these payments and out-come.
There is the mortgage payment or rent housing, Council tax or local rates, payments by credit card, debit loan, bills, heating bills, water rates, telephone bills and payment systems Mobile, pensions and savings commitments, insurance, rental – reimbursement of purchase, car, bike and travel expenses. And that’s all before you have something to eat or drink or put shoes on your feet.
When relatives such as children, there are new uniforms are paid for fees Johnny Football Victoria and piano lessons and ballet. If you are lucky you might even be able to put aside some ‘for a rainy day or maybe even a holiday or vacation. After doing the math, then you must ask yourself how you’re going to pay for all that is in an accident or are working with a long illness?
Fortunately, a kind of insurance called income insurance or income insurance, as it is often called, was invented to protect and the cost of all monthly out-downs, but you can not work.
For a low monthly premium, the employee in a position of a monthly allowance to cover is typically 50 or 60 percent of their monthly income has been received, should have an accident or illness that prevents them from working for a long period.
Income from insurance has two different types of coverage, each calculated differently and is addressed to several members of the workforce.
General incomes policy to take into account professional, current and past health and lifestyle considerations as if you are a smoker or not. These types of policies provide a monthly benefit arrangement, often tied to inflation indexed, fixed price, which remains the same throughout the duration of the contract or until canceled.
General policies of income protection to pay for an extended period, possibly until retirement or for the time necessary to get an exemption from work. Because of the extent of coverage, this type of pension contributions, was known as health insurance in the past.
Alternatively, you can choose an age-related insurance income. This type of protection provides the same benefits of a general policy, but by factors such as age and health are determined, work and lifestyle are not used to calculate the monthly premiums. Age-based guidelines are often short-term payments to cover supplies for the duration of one or two years of sick leave only.
Each type of policy has its benefits and costs. An age-related policies will generally be cheaper for younger people, those who smoke and those who are at high risk jobs. The disadvantage is that the premiums go up every year, but this is offset by an increase in the control of personal wealth as people age.
These workers in jobs with low risk, such as office staff and professional services that are in good health and lead to low-risk lifestyles, you can quickly a general income insurance is cheaper and offers more flexibility and greater coverage .
Both types of pension contributions offer what is known as a deferred credit period or extra period, the time between when the employee is off work and the first day that they want coverage to begin the payment is unknown.
Early periods allow the employer to sick pay law to be paid four weeks. Many employers offer full pay for a maximum period of six months after an employee is ill or has disappeared with a crash, all employers have a lot of good for another six months of absence for six. A latency period is used to start income-insurance benefits, if these resources are exhausted. In the long term deferred alleged excess, such as six months, the number of monthly premium to be paid more than half.