As an insurance agent, you must be prepared for all customer questions. A bunch of questions will come your way regarding insurance policy before a customer decides to go on board with the policies offered by your company.
Insurance policies are tangible; hence, customers should have enough clarity before signing up for an insurance policy. As an income insurance agent, you know about your line of authority and can readily answer all the queries; however, it is best to be prepared.
In this article, we have brought together a list of FAQs (Frequently Asked Questions) to help you answer your clients' queries. These questions answer customers' most common queries regarding income insurance to help you get started on your way.
Common FAQs About Income Insurance With Answers
1. What is Income Insurance?
Income insurance helps you financially when you can't continue to work due to medical reasons on a temporary or permanent basis. It usually covers up to 70% of one's monthly income.
For business owners in medical situations where they cannot continue to work, the percentage of coverage depends on the owner's share in the business. This amount is usually sufficient to cover one's monthly expenses and bills, ensuring peace of mind and not stressing about making ends meet.
2. What are the two types of income insurance?
Asteya offers two types of income insurance; Sickness and Injury Disability Income Insurance and Permanent Disability Income Insurance.
Sickness and Injury Disability Income Insurance will protect your income sources when you are injured or seriously ill and unable to work. However, Permanent Disability Income Insurance provides financial support if you become permanently unable to work.
3. Who should consider opting for income insurance?
Most of us think that a severe injury or long-term illness is at bay and continues with our lives. The hard truth is that accidents and injuries don't come with warnings; hence we should always be prepared for the worst in financial terms.
Therefore, all adults should consider opting for income insurance if they ever become incapable of earning a living. Instead of being financially unstable and reeling under debts, it is always better to have a backup resource that takes care of your finances in dire times.
Especially parents who have a family to support, single parents, and self-employed individuals would require income insurance.
4. When can I expect my income insurance to pay out?
Income insurance can be claimed when you have been certified medically unfit to continue working and meet the insurer's policy terms. However, once you have applied for the claim, there is usually a waiting period.
During this time, the insurer performs a thorough background check on your situation. It includes whether it meets their definition of inability to work and your past 12 months' financial history. Then they arrive at an informed decision on whether they can approve the claim.
The longer you are willing to wait for the claim to be approved, the cheaper the policy and vice versa. However, it must be noted that income insurance is not eligible for people who have been fired or have resigned on their own accord. In addition, the claim can only be applied on medical grounds.
5. What is the cost of income insurance?
The cost of income insurance varies for each individual as it depends on several factors, such as age, waiting period, the risk of being insured, and several other factors. Besides, there are many options for you to choose from as the policyholder, which determines the insurance cost. These are:
- The amount of coverage you are claiming
- The duration for which you will be insured
- The tenure of your waiting period
- Whether you are opting for sickness and disability income insurance or permanent disability income insurance
As it is a lucrative product, your age, health, and lifestyle also play an essential role in deciding the coverage amount. The insurers would like a clear picture of the risk you are in or could be at before approving the coverage. These factors are:
- Your health history
- Family health history
- Your BMI, height, and weight
- Whether you are a smoker or not
- Your lifestyle and occupation
Due to these many factors that require to be taken into consideration, the waiting period is often longer. At Asteya, income insurance plans have been curated for people from all walks of life and start with a minimum amount of $6 per month.
For customers who claim permanent disability income insurance, Asteya can offer a one-time benefit of up to $500,000. This is provided that you are fatally injured or ill and not returning to work in your lifetime.
Asteya provides up to $20,000 per month against a monthly disability income insurance policy until you can resume working and earning. While these are the estimated figures, the final coverage amount depends on several factors mentioned above.
6. Can I still apply for income insurance if I have a pre-existing health condition?
Since health conditions are not the only determining factors for buying income insurance, you should be able to claim it even if you have a health condition. However, the approval process or the kind of coverage you can expect depends on your health conditions' severity.
Nevertheless, in all instances, you must inform the insurers about your health conditions, lest they may not approve your claim or invalidate the policy upon discovery in the future.
7. Can I apply for income protection insurance if I get sick pay?
Sick pay offers protection against a severe injury or illness, but it usually does so for a certain period. For example, employer sick pay is generally provided for 13-26 weeks, while statutory ill pay usually is for around 28 weeks.
Income protection can provide financial assistance beyond that point and at a higher amount, which will benefit you largely. Therefore, you can apply for income protection if you cannot earn after your sick pay duration is over.
Sick pay is a fine cushion, but income insurance ensures you have sufficient funds and peace of mind.
8. Do I need income insurance if I have a business or am self-employed?
People who work for companies get financial benefits and coverage in most cases. However, suppose you are freelancing, self-employed, or have a small business. In that case, you must apply for income insurance as you don't have a resource to fall back on.
With income insurance, you can at least pay your bills timely and acquire the essentials to sustain. In addition, you will have an assurance that you can protect your source of income, even when your health limits you from earning.
9. How do I configure whether I require income insurance protection?
Whether you have a job or don't, you need to understand your financial requirements and commitments. Everyone has unique financial needs depending on their standard of living. Therefore, you must consider the worst possible scenarios and conclude whether you require income insurance and why.
Let's look at a few real-life situations to have an understanding:
- You need to consider whether you have any financial commitments, such as mortgages or bills, that you must continue to pay out even when you cannot work. In most cases, what keeps us worried about losing our job or something unfortunate happens is how we will continue paying off our debts or financial commitments.
Therefore it is essential that you consider these factors. This should bring you to the next question of how long you can continue to pay in such cases without a financial backup. If it's not for long, consider opting for income insurance to help meet your financial debts and commitments.
- Suppose you are a single parent or are the sole bread owner in your household. In that case, you need to consider whether they would be impacted in any way if you lost your job temporarily or due to a permanent disability.
- Lastly, the most important thing to consider is whether you have any savings or assets that will come to your rescue if you fall sick or fatally injured. If yes, then you must decide for how long you wish to utilize that resource or whether you want to use it all.
By considering these game-changing questions, you will have much clarity on whether you require income insurance.
Help Your Customers Learn About Income Insurance today!
Income insurance comes with a comprehensive package that will guarantee your financial security in dire times so that you don't stress yourself out to provide for your family. This is the message that your clients need to understand to gather a sense of the several ways income insurance can benefit them.
To learn more about income insurance and help address your customer concerns, check out our blogs on income insurance at Asteya.