Who Needs Income Insurance?
Anyone who is the bread winner of a family will want to consider income protection insurance. Although it sounds like something extra to add on to the monthly bills, it is important to make sure that there is enough money for the family to live on should something unfortunate happen. No one plans on an illness or accident, but they do happen and planning ahead is often the best way to weather the rocky time.
Income protection insurance is a policy that is suppose to protect the policyholder if they cannot work. Because it does not take long for most people to get into financial trouble without a steady income, this is very important to have. The government provides a disability program for people who cannot work, but that often takes months to start and usually is for someone who has a permanent disability. People who are self employed do not qualify for this type of insurance coverage either so it is especially important they look into some other type of insurance coverage. For the person who can not work for a few months but will often be able to go back to work, an income protection insurance plan will be the perfect answer.
The insurance will provide a monthly income that is a percentage of the policyholders salary. This is a fixed amount and although not as much as the normal income amount, it will be a great help. There are several types of policies. Some will be for a fixed amount and others will cover the loan payments. For example, it is possible to have a small policy that would only cover the car or house payment should the policyholder be unable to work. Many lenders require this type of insurance and it does add a certain about of peace of mind for the breadwinner. The protection could also cover the health insurance policy, so it stays in effect. That could be very important because no health insurance could be a real disaster for someone who in the middle of treatment.
There are several options when buying this type of policy. The biggest one will be to decide if the protection plan will cover only if the policyholder cannot work at their particular job. For example if they were a brick layer and hurt their back, maybe they can no longer lift bricks, but they would be able to work in the office selling bricks. If the person wants to have insurance that will cover them if they cannot lay bricks and not require them to seek other work, it can be more expensive. It is something to consider and understand before purchasing the policy.
There is often a lapse time before the policy begins should someone need to take advantage of their policy. Sometimes it is a matter or days or weeks and other times several months. If all depends on how long before the breadwinner thinks they will need to have the income started. For someone who has a big savings, they will often want to wait, because the price of the policy will be lower, but some people would need the money as soon as possible.
Most people never think about this type of insurance, but it should be considered. Accidents and illnesses are all part of life and if a small insurance policy could provide financial stability during a rough time, it should be considered. It could make all the difference in the world and change a disastrous situation into one that is completely workable. The price is reasonable for the coverage it provides and most people love the peace of mind it brings.
by: Renaldo Ottosen