It is not how much money you make but how much you saved for the rainy day that really matters. Thus, your financial preparedness would determine your success in life. All of us are set to work hard to settle in life and to provide for the family. In our life’s journey we might come up against situations that might pause our dreams and might drive us to gloom. A goal without planning is just a wish and the biggest mistake that most people make when it comes to financial security is that they do not plan. Income protection insurance prepares you to meet life’s unexpected turns with confidence.
A well-known saying goes… “Health is the greatest gift, contentment the greatest wealth, faithfulness the best relationship”. An intelligent person will plan for the protection of his income to achieve his dreams although he suffers from a sudden sickness, an accident that temporarily disables him to work, or a sudden loss of a job. Today’s binary world can throw us into the tunnel of despondency at any moment and we have to be well equipped to face the challenges. Income Protection Insurance is the panacea that comes to our rescue. Income protection insurance provides income on a monthly basis covering approximately 70% of our income to meet the challenges of life. Although, Income Protection Insurance is not a legal requirement like Car Insurance, Home Insurance, etc. insurance companies state that income protection insurance has been claimed in more than 95% of cases.
Income protection insurance is also known as sickness insurance or disability insurance. This can cover your maintenance, your mortgage, your credit card bill or a particular debt. Some policies pay against sickness or accident only. Some policies pay against unemployment, sickness and accidental injury. These policies often pay out for a period of 12 months. However, income insurance can be tailor-made to suit one’s individual needs.
The premium will depend on the age of the person, type of employment (self-employed, freelancer), illness history, smoking status, etc. The premium of the policy is also determined by the deferred period that is the length of time after making a claim that the policy will begin to pay out. The deferred period might be 4, 13, 26, or 52 weeks depending on how long you could survive on your savings or how long your company would give you sick pay. The income protection policy premium is also determined by the monthly benefit amount you would like to receive, the term of cover, the number of years you would like to be covered whether it is up to retirement or up to death.
Conclusion
Life Insurance is an essential part of you and your family finances while income protection insurance protects you in case of illness, accident and is a key pillar of your future well-being. Income protection insurance covers various areas like mortgage payment, debt payment, credit card bill, maintenance, etc. It is essential to get a clear idea of various provisions their benefits, limitations before going for it. Value Finanicial Services is the Best Financial Service that gives you a clear picture of income protection insurance. Our expert consultants will counsel you, taking into consideration your specific needs and suggest the best plan that will work for you.