What is a benefit period when it comes to income protection?
The benefit period in income protection insurance refers to the maximum length of time you can receive payments if you are unable to work due to illness or injury. This period begins after the waiting period ends and can range from 2 years to until you reach a specific age, such as 65 or 70, depending on your policy.
A shorter benefit period, like 2 or 5 years, generally comes with lower premiums but limits how long you can claim benefits. On the other hand, policies with longer benefit periods, such as “to age 65,” provide extended financial protection but usually come with higher premiums. Selecting the right benefit period depends on your financial goals and how long you need coverage to maintain your lifestyle if you cannot return to work.
