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Bill protection insurance is a general insurance product which is designed to provide payments due to loss of your earning capability and not determined to be life insurance. So, only a limited number of bill insurance providers may offer coverage in the event of death and the benefit may vary between providers.
Bill protection insurance is a type of cover that provides a monthly benefit payment to cover your bills should you get seriously injured, ill or become involuntarily unemployed. This protection plan can assist you in meeting your financial obligations so you can focus on your recovery or looking for new employment.
There are a number of different insurance providers in Australia that offer this insurance plan with various benefits and features. Some key policy features to look out for include (but are not limited to):
Some bill cover plans in Australia offer financial protection for individuals (employee or self-employed) who have been made involuntarily unemployed, for a maximum of three months. The terms and conditions of this feature are often quite strict and may vary between providers.
In order to be eligible for this benefit, you may have to satisfy the following conditions:
If you need more information on the redundancy benefit, it is absolutely essential to read the Product Disclosure Statement (PDS) and remember that they are not offered by all bill insurance providers.
Not all bill cover plans are designed the same way, so it is essential to compare the different products to determine which will suit your needs most. Besides price, there are a number of different features that you want to keep an eye out for:
Bill cover plans are quite similar to income protection insurance in terms of the protection they can provide, which is to provide you with monthly financial assistance if you are to become disabled due to an illness or injury. However, there are a few differences between the two types of products that you should know to determine which policy would be most suited to your needs:
Monthly benefit amounts are limited and are designed to cover bills that you have nominated. | You can insure up to 75% of your average monthly income and benefit payment can be used to cover bills, debts and any day-to-day living expenses. |
Short-term cover | Long-term cover |
Some policies provide coverage for redundancy | Income protection does not cover involuntary unemployment, but some policies offer optional features that offer assistance at the time of redundancy for additional cost. |
Bill cover offers basic financial protection | You can tailor your income protection policy to include rehabilitation and nursing care benefit. |
Bill insurance plan is a simple and straightforward form of insurance that is available to a wide range of applicants. To apply for bill cover, you must be:
If you are looking for an affordable short-term cover for illness or injury, and if you have been made redundant, you may want to consider bill protection insurance. However, if you require an insurance solution to cover you when you are disabled either long-term or short-term, with additional features and benefit that you can tailor according to your needs, income protection insurance may be a better fit for you.
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