subject: Do Not Ignore The Income Protection Insurance [print this page] In some matters it is better to act sooner than later and Income Protection Insurance is one of them. Future is uncertain and if the uncertainty happens to be related to your monthly income, it could have a major impact on your as well as your familys standard of living.
Income Protection helps to meet the day to day expenses in case you lose your job. Job loss can occur due to any reason be it disability, improper skill set, unemployment and major changes in the economy which leads to closure of a company or business. Income protection cover thus helps you to meet the financial commitments at that time. Let us read few of the benefits of Income Protection in detail:
Wok Inability: While you work, you draw a fixed or variable amount of money every month as salary. But the loss happens if you fall ill or meet with an accident, which require more than permitted amount of leaves from work. The main worry at that point of time is to have some income in hand for meeting the necessary expenditure. Worry always has negative impact on the health and increases the time of recovery reversely. To save yourself and your family too from unnecessary botheration at the time when you need to discontinue your work due to sickness, it is best to take the Income Protection Cover. As in this you get paid a fixed amount on monthly basis as per the policies terms and conditions.
Cover for longer duration: How many policies have you taken so far and what is the coverage period of it especially if it relates to health? Most of the health insurance plans cover the amount of expenditure incurred on hospitalisation and medicines but there is nothing called a fixed amount to be paid month on month basis till you recover and join back the work. However, Income Protection Cover has some major benefit, firstly in terms of the age duration which it covers and another is guarantee of a fixed amount every month. The age covered under Income Protection Insurance generally falls between 25- 65 years. The amount to be paid to insured party every month is calculated on the basis of certain information and data out of which the salary drawn by you while you were well and working is one of the major factors.
Unusual diseases: Certain disability like mental sickness is not covered under much of the policies but Income Protection covers it. The extent to which it is covered and the terms on which it is covered can be known from the insurance provider. After going through the above points, would you still ignore the Income Protection Insurance?
by: David Jones
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