Income Protection Insurance
Although there is such a vast amount of insurance covers available out there income
protection is without a doubt one of the most important you could come across, especially within todays economic climate where the number of people becoming unemployed is sky high. This type of insurance pays out a monthly benefit in the case that the policyholder becomes unemployed due to numerous unforeseen occurrences.
Such a policy is extremely comprehensive in the way that it covers almost every medical condition that will see you unfit for work. This is different in the way that critical illness insurance works as it doesnt only pay out in the case that you suffer from an illness actually specified in the document.
Most insurance companies offer up to 65% of your monthly earnings with no maximum limits for the majority of workers. The term of the contract is generally around 5 years with some running up to a maximum of 70 years. The aim of income protection insurance is to provide you cover of your earnings in the case that you become critically ill or have an accident that deems you unable to work, even if it is for the entirety of your working life in some cases, depending on what is involved in your contract. However, it is also possible to make multiple claims on the same plan as with disability income insurance it has the potential to pay out each month up until your age of retirement if it is the case that you are never able to go back to work due to your incapacity.
This type of insurance is absolutely essential for most people and it is important that pole realise this before it is too late. With the future being unforeseeable you never know what could happen from one day to the next and if you are to find yourself in a position where you are unable to be employed due to such an unfortunate event you can be provided with the peace of mind that you are financially covered and able to maintain the lifestyle that you have worked so hard for, both for you and your family if you are the sole earner of your household.
The payouts are tax free and with the majority of people being able to take this out you are able to ensure that you are protected financially against any type of accident or illness, which is why it is one of the most important types of covers to take out. Absolutely nobody can guarantee that they will not fall victim of an unfortunate occurrence such as an accident or serious illness and this is where income protection insurance comes into play by taking a huge weight of your mind and freeing you of unnecessary stress during such an event.
This provides you with the power to carry on paying your bills and mortgage repayments being deducted prom your bank account and plays a huge role in preventing that feeling of total helplessness during a state of serious illness. With all this in mind it is easy to see how income protection insurance is has rapidly gained popularity during recent years as people are becoming wiser to losing such a great deal without it.
In addition, with the new coalition government in place it is becoming increasingly difficult for those of us who are actually genuinely ill to claim state benefits, so income protection insurance also provides you with the safety net that you will be eligible to some type of income if such an event should arise. Income protection insurance allows you to receive benefit payments of up to around your income during the time in which you are unable to work.
by: Buddy Stirewalt
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