By Andrew Clark
When comparing income protection policies, there are
some critical issues surrounding the amount of your monthly benefit
that need consideration.
Firstly, most companies limit the amount that you
will be paid to a proportion of your income, irrespective of the
benefit amount that you are paying for.
This proportion may be a percentage of your
pre-disability earnings for a specified period immediately before
Some policies will calculate your maximum monthly
benefit payout based on the highest average monthly earnings over
the previous year and others will base on your earnings at the time
Most companies include annual indexing of the
monthly benefit amount where you are automatically offered an
increase in the amount you insure based on increases to the consumer
price index (CPI).
These CPI offers are in relation to the amount that
you insure each year on the anniversary of your policy. They are not
the same as an inde3xed claim benefit that allows
start your income protection insurance quote