Salary continuance insurance is a valuable help for individuals who have suffered and injury resulting in a disability. Imagine yourself without the ability to work and earn for your family who rely on you for their basic needs. With salary continuance insurance as part of your life insurance coverage you can continue to provide for your family even if you are unable to continue working, reducing the impact of losing the major part of your income.

Benefits of Salary Continuance Insurance

A life insurance policy is an effective way of protecting your family against financial loss in the event that you become terminally ill, suffered a disability or in the event of your death as your insurance can replace your income and help you maintain your lifestyle and security for your family. Salary continuance insurance is one way to help you supplement your income if you are incapable of earning your usual income. When you are covered with salary continuance insurance you can benefit from:

• Earn an income even when you are incapable of being employed due to your disability, illness or injury. Also known as income protection or insurance for sickness and accident, salary continuance insurance will pay you a certain percentage of your income amount from before your accident or illness every month. Some insurance companies will pay at least 75% of the insured’s regular monthly income rate. Unfortunately there are few companies that offer a policy that would pay you 100% of your regular monthly income. A 100% income replacement policy is rarely entered into because it is very expensive and there is the likelihood that you will be able to go back to work again, hence making the policy impracticable.
• Group salary continuance insurance. This is very common in companies that want to extend financial assistance to their employees after the end of their statutory sick leave period. The salary continuance insurance provided by an employer will be responsible for providing a portion of the employee’s income throughout the period when they can still no longer earn their regular salary from employment, and have exhausted their sick leave benefit. With a group insurance, the standard premium you pay for your insurance policy will be lower than if you had applied for the insurance individually. Some companies are even generous enough to offer paying a share of a certain percentage of their employee’s insurance policy as part of their employment benefits.
• Enjoy financial benefits from the salary continuance insurance. If you work in any sort of employment you can enjoy the peace of mind of being covered with salary continuance insurance. You will find yourself able to provide financial security to your family even if an unfortunate event occurred such as an injury, accident or sickness. Statistics show that workers tend to be more prone to suffer from disability than premature death hence this form of insurance policy will help you augment your financial needs. The proceeds from the insurance can be used to pay the bills and for the daily expenses for your family’s basic needs. Salary continuance insurance can be initiated by the employer or independently, but either way there is no reason to neglect insuring your family’s income.

Salary Continuance Insurance Coverage and Eligibility

If you intend to apply for a salary continuance insurance policy, you should know about the terms and eligibility criteria covered by your insurance policy. This will help you make an educated and well informed decision for signing up for a life insurance of this kind:

• One is not immediately eligible for the insurance coverage. The basic principle of salary continuance insurance is to provide you an income from the moment your paid sick leave benefit expires. Therefore you can start receiving your insurance benefit the moment you have exhausted all your paid sick leave credits.
• There is a waiting period before you can start receiving your salary insurance benefit. The waiting period will depend upon the terms and conditions provided in the policy that you have agreed to enter into with the insurance provider. Most of the time, the terms will require that you use all sickness benefits due to you from your employer. The insurance payment will then usually commence once your employment sickness benefit coverage ends. You may want to start applying for the insurance earlier for more secure protection. The salary insurance will also depend upon the term you chose to pay for your policy. You can usually choose a payment term for your insurance benefits from 1 year up to 5 years. Or you may opt to be covered until you reach your retirement age.
• Getting salary continuance insurance can be expensive. This makes it crucial for an individual to make an informed choice when they opt to apply for a life insurance of this kind. There are many insurance providers that offer varying coverage protection for their insured members. They also differ in premium rate. This makes it important for you to decide on the right type of policy with the benefits which will be most valuable to your family. If you neglect to read the terms and conditions before signing up, when you make a claim you might find you have been paying your premium costs for a policy that doesn’t cover all of your needs. Take note that a salary insurance plan that works for another might not suit your needs. It is best to define your insurance needs, your budget and future savings before deciding whether a particular salary continuance insurance policy is best for you.

Therefore make sure you consider the benefits and conditions of salary continuance insurance when comparing the benefits of the different policies. A life insurance policy is a necessity to give your family protection, but you need to make the right decision in order to maximise all the benefits for you and your family.