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Income Protection Insurance Policies in Australia

By: Stephen Handley

Everybody needs life insurance because of several different reasons, and income protection is available in Australia. A person will want life insurance to make sure that his or her dependents are taken care of after he or she passes away. Additionally, if a person has life insurance, this will pay off any unpaid debts and help for his or her burial. In Australia, a cremation service can range from $3,500-$9,000 and a burial service can range $5,000-$20,000. Having life insurance to help cover these costs is very important because you do not want to leave your dependents to pay for these services alone. However, there are five different types of life insurance policies that a person in Australia can chose from and different companies to get income protection insurance quotes from. Technorati : HSSZCDDW6TJF

Term life insurance is a life insurance policy where a person pays a fixed payment for a certain amount of time, which is called the relevant term. After the relevant term expires, the former rate of premiums is not any longer guaranteed therefore, the client must let the coverage lapse or sign up again with different payments and conditions. Term income protection insurance is not recommended if a person who has estate or charity needs for his or her life insurance policy, term life insurance is mainly for leaving money to a person&rsquos dependents. Another life insurance policy available is whole life insurance.

Whole income protection insurance, which is also called Straight life insurance, will give a person lifelong protective cover. A whole life insurance policy is more expensive than a term life insurance policy however, this insurance policy has a cash value. A person can borrow money from the cash value of this insurance policy however, if the person dies before the money is paid back, the benefits paid are less. However, Universal life is another type of life insurance policy that is available.

The Universal income protection policy is a policy that is a combination of a tax-deferred saving plan and term life insurance. With Universal life, a person decides how much he or she wants to pay towards the life insurance and how much he or she wants to put into the savings therefore, the premium can vary. Additionally, a person can make partial withdrawals from the savings for a small charge. This would be a good insurance policy for a person in Australia, if he or she wanted to save money and have a term life insurance policy at the same time. However, if a person in Australia likes to invest money in such things as the stock market or bonds, Variable life might be the right type of insurance policy for this person.

Variable life has a definite set amount for payoff at death but will increase if the cash value of the policy rises. The cash value of this insurance policy is determined by the person&rsquos choice in money-market funds, the stock market, bonds, or any kind of fixed income investments. Depending on the income protection insurance company policies in Australia, the person can usually switch his or her choice of investments two to five times a year. If a person in Australia needs a tax-shelter or likes to work with fixed income investments this would be the life insurance policy for him or her. However, there is also a combination of the universal life and variable life insurance available.

The Variable Universal life insurance policy is a combination of the universal life and variable life. The person who takes out the policy can decide to invest his or her money. There are not any set premiums payments with this policy but if the person&rsquos choice of fixed income investment drops the day that he or she becomes deceased, he or she could only end up with very little money for life insurance. If a person is looking at getting a life insurance quote in Australia, there are many life insurance companies to getincome protection insurance quotes from.

One of the companies that will give a income protection insurance quote in Australia is Allianz. Allianz will give up to $1.5 million. Allianz offers term life insurance and a person must be between the ages of 16-years-old and 65-years-old to apply. Zurich Financial Services of Australia is also another insurance company where you can get a life insurance quote. Additionally, Real Insurance of Australia offers a wide variety of different life insurance policies that a person can pick from, and a person can add funeral expenses cover for just $1.72 a week. There are many different companies in Australia that offer a variety of life insurance policies and that offer free insurance quotes, so it would benefit a person in Australia to take a few minutes to check with some of these Australian insurance. Having income protection insurance would give a person a peace of mind, knowing his or her family will be taken care of.