http://www.cmyjobs.com/unemployment-michigan-marvin/
Income Protection Insurance Buying Advice
If you are worried about paying the bills if you lose your job, income protection covers your income against unforeseen unemployment, however there a 5 major things you should be aware of when buying this cover online.
1. The Exclusion Period.
Nearly all policies have a wording which excludes claims for unemployment for 120 days or four months from the inception date when you took out the policy.
Insurance companies use this period to cover themselves against those who knew they were going to be made redundant or unemployed.
2. Pay the Premium monthly.
Nearly all income protection insurance policies are continuous monthly covers. Premiums are most often paid monthly in advance by direct debit for the next months protection.
Because they only cover you on a month by month basis as long as you pay the premium, it is now very easy to shop around and get better cover at a much fairer premium.
Unemployement is rife at the moment due to Government cutbacks and the recession. If you feel that your employment may be under threat, you should act quickly to secure income protection cover. Many companies are still offering competiitive rates despite the increasing number of claims.
3. Move to a New Income Protection Provider. Cheaper Income Protection can be purchased from an independent ASU provider on the Internet. If you bought your income insurance cover from a bank or building society you could be paying five times the premium and should consider changing supplier immediately.
However many of the independent income protection providers may have in place a premium waiver for this period in order to win your new business.
4. Excess Period.
An excess period should not be confused with an exclusion period..
The excess period can vary by company and if you select longer excess periods, this usually means cheaper premiums
This may not always be in your best interests, so many of the independent income protection insurance suppliers now offer policies which have ‘back-to-day-one cover’.
For example, if you take out cover and then made a claim on the 1st of May you would wait until the 31st of May before receiving any benefit but the payment would be for the entire period you are unemployed or disabled from the 1st of May.
5. Shop around for cover.
Income Protection Insurance is one type of insurance where it really does pay to follow the principle or maxim ‘shop around’.
However today the better Internet sites, which are generally independent product suppliers, now make the process quick and easy, and should not deter you from purchasing this modern insurance essential in this most turbulent of economic times.
Marvin Carlson: On Michigan Jobs