Waiting periodIf you are unable to work due to illness or injury, income protection covers you with a supplementary income to ensure you can keep paying your bills and support your dependents. When applying for income protection, you get to choose how long you want to wait from the time you make your income protection claim, to the time where your insurance company starts making regular payments to you. The sweet spot for this wait time is usually 13 weeks, but it's up to you.
The longer you decide to wait until you start receiving the payments, the cheaper your insurance premium.
Payment periodThe payment period says it all in the name, this is the period of time where you decide how long you'd like to be paid by your insurer. This period of time could range from 12 months, up until your retirement or until you're ready to return to work.
If you choose a longer payment period, you'll have better long term protection, however, as you'd expect, the increased protection time comes with a higher premium.
Visit the LifeDirect income protection page and try quoting yourself at a range of payment periods to see the difference. If you can manage the additional cost, consider opting for the better long term protection. If you're still unsure about how it all works, feel free to jump onto the LifeDirect website and start a livechat and talk with one of our sales consultants. Alternatively, you can give us a call on 0800 800 400.
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current development or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.