Since income insurance plans come under the umbrella of life insurance, most first time buyers believe that life insurance plans protect people when they cannot earn a steady income. This is not true since life insurance plans only pay the pre-decided compensation amount when the policy holder is no more due to natural causes or medical reasons. Life insurance plans also pay the pre-decided compensation payment to the beneficiaries if the policy holder passes away due to an accident such as a motor accident. Income protection insurance on the other hand offers monthly compensation payments to the policy holder if he is not able to earn a steady income for a short while such as a month to a few years. Listed below are some important facts that all buyers must know about when purchasing either life insurance or income insurance plans.
Competitive Life Insurance Quotes for $500,000 Coverage
Now that you have understood that life insurance plans and income protection plans are separate types of plans that do not offer the same benefits you should understand that both plans are beneficial in their own way. Life insurance plans mainly benefit the family of the policy holder when he passes away however; income protection plans benefit both the policy holder and his family when the policy holder is alive.
Cost for $500,000 Life Insurance Cover
If you are a 30 year old male then you can expect to pay $30 – $35 a month towards a good life insurance plan that offers a cover of $500,000. However; if you are a 30 year old woman then you can expect to pay $25 – $30 a month towards life insurance plans that offer a cover of $500,000. These approximate rates are for non smoking adults who have not been diagnosed with blood pressure, heart problems or other health conditions.
Factors that Will Decide Your Premiums
Your age, your gender along with many of your habits will determine how much you will pay to the insurer. If you have blood pressure, heart problem or other serious medical conditions then this will also affect the total amount you pay towards yearly premiums.
If you smoke, if you drink more than a few drinks a week or if you ride a bike then you can expect to pay higher premiums mainly because you will be classified as a high risk buyer. Similarly if you drive a fast car or travel frequently while on work then you will be classified as a high risk buyer.
When you pay your premiums, monthly or once a year can also affect the total cost you pay. Which type of premium payment plan you opt for; levelled or stepped premiums will also determine how much you pay. The factors mentioned here affect both life insurance and income insurance plans.
If you want to know beforehand how much you will have to pay every year or how much you can get from income protection plans every year then you should use online calculators on insurance websites.