The Importance of IPI
Income protection insurance Australia is a great insurance product that brings in a much needed respite if a person loses the ability to work either due to some fatal accident or severe health ailments. This type of policy is typically ideal for people who are self employed and also the only source of income for the family. Moreover people who have no health insurance or have low savings can also benefit from this policy Hence this policy is of great importance as it enables a person to still live without facing any stringent financial conditions on account of being unable to work and earn .Therefore this product can also act as a life saving mechanism for people who have suddenly lost their ability to work owing to illness or some form of disability.
Therefore the importance of this income protection insurance Australia cover should never be undermined. But before deciding on the fact if one needs the policy it is important to be aware of certain facts. For instance the policy is generally designed in such a way that it includes a list of conditions also referred to as exclusions which it does not cover. These might include one or multiple of the below mentioned instances.
1 )Medical conditions that were pre existing for the policy holder.
3)injury which is self inflicted and not on account of an accident.
4)Illness or fatal accidents on account of participation in criminal activities.
5) Alcohol or drug abuse.
6)Severe disability or illness on account of situations like terrorism, riots, war and other invasion.
It is also important to note that one may be completely denied a cover if he has severe medical conditions or is involved in an occupation that is of high risk in nature.
Finally, IPI is a long- term- insurance which is regulated by the FSA (Financial- Services- Authority) under its ICOBS (Insurance- Conduct- fob business- Sourcebook) rules.