There are various types of insurance, each purportedly designed to minimize the risks involved in our daily living. These risks are sometimes insurable by private companies giving us some sense of assurance that in cases of the occurrences of these risks, we will be compensated accordingly. Risks which are insurable by private companies often share common characteristics such as definite loss, accidental loss, large loss, calculable loss, catastrophically huge losses, and large losses. The good thing about the relationship between the insured and the insurer is that their relationship is bound by utmost good faith which is founded on the bond of fairness and honesty. Insurance industry is a booming industry because of the pragmatic tendency of people to minimize the effect of risks and assuage the impact of the occurrence of these risks.
One of the most popular types of insurance is the Income Protection Insurance (IPI). This type of insurance is designed to mitigate and assuage the impact of incapacitation on the part of an individual who had been working. An individual who is incapacitated due to illness or accident, and who had availed of this insurance, is entitled to the benefits of IPI. If you want to know more about IPI, you can readily visit http://lisagroup.com.au/income-protection-insurance/australia – income protection insurance Australia.
Variations of IPI
When it comes to the IPI product, you will surely find variations as to the kind of policy that you can avail of. Here are some of the product variations of IPI.
One of the variations of IPI is the “Renewable IPI.” This type of IPI provides the policyholders the privilege to renew the very policy they availed of. However, the renewal often entails an increase in coverage. The younger the policyholder, the cheaper the premiums are. Yet, as the policyholder grows older, the premiums increase in every renewal.
Another variation of IPI is the “Reviewable IPI.” When we talk of reviewable IPI, we are referring to an IPI that is like the fixed policy. However, the only variation is that the premiums are subject to review and will be increased every few years.
Additionally, there is the variation of IPI which is called “Increasing IPI.” This variation of IPI is designed in relation to inflation. Since a fixed policy is often at the mercy of inflation, an increasing IPI is more beneficial to the policyholder.
Moreover, there is the “Group IPI” which is usually provided by employers. There is usually a maximum payout period which readily applies to group IPI. This policy usually expires when the employee is no longer employed by the employer.
Lastly, there is the “Unit-linked IPI which is like the unit-linked policies of life assurance. Encapsulated in the unit-linked policy is an element of investment. The premiums for this kind of policy are often higher than those of the standard policies.
Understanding the nuances of the different variations of IPI will definitely give you a clearer view of this type of insurance. Moreover, knowing these variations will surely help you find out which variation is most suited to your basic need.