It often happens that due to an accident you had to quit your job or take a sabbatical. This might be because you might have been incapacitated due to some accident. In such cases, the Income Protection Insurance ensures that you have a steady flow of money in spite of losing out on the job.
Such insurances are also known as accident covers. These insurances have a lot of fringe benefits. However, they are not available in all states. Unemployment insurance, personal accident and sickness benefits are the primary benefits of such policies. These policies have a weekly basis payout for the policy holders.
Reasons for Incapacitation
Incapacitation of any policyholder has been classified into three categories. The first kind is if the policyholder is unable to perform his original duties at the workplace due to illness or accident.
The second category as per the Salary Protection Insurance is the suited incapacitation. This means the policyholder is no longer able to fit into the responsibilities which are suited to him. The last kind of incapacitation which is denied or not accepted by most Salary Protection Insurance companies is complete incapacitation, where the policyholder is incapable of performing any duties after the illness or accident.
Restrictions of the Salary Protection Insurance
Like benefits these policies have very stern restrictions too. These policies are strictly meant for policyholders who have been incapacitated only by any disease, illness or accident. Rest any other cause of incapacitation is not accepted by these insurance policies. For individuals who lose the earning capacity due to any mishaps like any accidents or illness, these policies ensure the regular cash inflow on a weekly basis.
If you have faced such a setback in life such as losing out on a job because of the unavoidable circumstances, then you can get the benefit of a regular income with such Salary or income protection insurance policies.