An income protection insurance policy always states a predetermined waiting period and benefit period. You have the freedom to set these terms according to your needs and preferences, but before you do we are going to discuss what these terms actually are.

Waiting period is the amount of time you are willing to wait until the insurance company starts providing you with the insurance coverage. You can set the waiting period to be as little as 14 days and as long as 90 days depending on your personal financial state. The shorter the policy’s waiting period, the higher insurance premium you will have to pay.

The income protection insurance benefit period, on the other hand, is the period during which the insurance company provides you with the income protection coverage. The common insurance policies usually come with the benefit period set at 2 years, 5 years, or until the policyholder reaches the age of 65.

Since you can set both the waiting period and the benefit period accordingly, you can easily find the perfect balance between benefits and affordable insurance premium. Don’t hesitate to consult an insurance expert regarding the best combination based on your personal financial state to make the income protection insurance even more beneficial.