Disability income protection plans help the policyholder with their living expenses in the event that they are unable to work. Usually you are able to purchase a disability income protection policy that will provide protection for 75% of your annual income.
This means that in the event that you are unable to work due to injury or illness (even if the condition is not caused by your occupation) you are entitled to a monthly benefit that is equal to 75% of your monthly income. Normally a disability income protection plan will continue to pay a benefit until the policyholder reaches the normal age of retirement. Disability income protection plans are also index linked, this means that your benefits will always be adjusted to the current inflation rates until you return to work.
Disability income protection plans will usually not cover for any pre-existing conditions that a policyholder may have prior to entering a plan, much like a global medical insurance plan. This means that even if the policyholder is unable to work because of a pre-existing condition, they are not entitled to the benefits associated with the policy.
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