Incorporating savings and investments in your financial plan is a step in the right direction as it helps you take control of your financial future. Nevertheless, it is also vital that you safeguard yourself against unforeseen and unfortunate events in life as they may hinder you from working and getting the money you need. For this to happen, you need to get yourself an income protection plan and protect your family while providing for them in times of need.
Before taking this route, you need to be certain that you understand everything about it the moment you calculate the amount of money you might need. In this post, we will share two factors to consider when looking forward to getting an income protection plan.
Number of Policies Available
There are many life insurance providers in Singapore with each one of them making use of a different underwriting process. For this reason, each provider has their own criteria for accepting your policy application. If this is not enough, you have to make do with dissimilar terms regarding the amount they pay in the event of a claim.
That said, you should never settle for the first policy your come across as it might end up working against you. Instead, compare the policies available at your disposal and think about what fits your needs and preference. Through this action, you will get a slight insight into the differences that exist between each provider’s policies.
Waiting and Benefit Periods
Once you lodge a claim; you have to undergo a waiting period before the income protection benefits are payable. The number of days you have to wait depends on your policy terms. For those who successfully apply for one with a shorter waiting period, then it might increase the cost of their income protection plan as opposed to waiting for a longer period. Either way, the decision you choose to settle on is entirely based on your preference.
In Conclusion
Choosing your income protection plan is not a decision that you should take lightly. With dozens of providers in Singapore, all of which have different terms and policies, be sure to examine as many as possible before making a decision. That way, you will not have to cry foul way after signing a contract just because you did not do your homework.