A Quick Guide to Salary Continuance Insurance

Salary continuance insurance is, as its name suggests a form of insurance through which your salary is replaced should you lose it due to an accident or illness that prevents you from working for any length of time. Another name for this kind of insurance is income protection insurance. Most such insurance will pay 75% of your income each month when you are on claim; however, it is possible to get insurance that pays more – even up to 100%. These are not common, but they do exist.

Before choosing salary continuance insurance you need to ask how much income you would want to be without if you were to have an accident or become so ill that you were unable to work for some months. You should also decide how long you could wait to be paid. With many income protection insurance policies the waiting time before payment begins is one month. You may have other income or you may have lots of savings, but do you really want to use it all for living expenses?

Another important element of such a policy is to decide on how long you want the payments to continue for. Going back to work before you are totally recovered can really put you at risk of further illness or make your final recovery take even longer, so it would be good to know that it was not imperative that you return to work too soon.

Knowing exactly how long you need to wait before claiming and how long you will receive payments for is essential. However, there is one other thing that many people do not consider and that is the possibility of not filling in the application forms correctly and being rejected simply through some information being missing. This can actually put a black mark over your name and make it harder or impossible to get such insurance the next time you apply.

But if you use an experienced advisor to help you, their involvement adds quite a lot of positive weight to your application and so it is far more likely to be accepted the first time around.