Income Protection Insurance: Why Should You Buy One For Yourself?

When there's a valuable asset that you want to invest on, like a car, a yacht, new house on the lake and a lot more, it needs to have insurance plans. Your income is the greatest asset you'll ever have in order to buy the rest of your future wants. However, how will you be able to protect your income when an unfortunate event happens? Experts agree that before we reach the age of 65, we will likely to get an illness or might lose our jobs.

But even sick leaves or health policy won't be enough to pay other daily expenses. Your company would leave you struggling to get by and deal with your illness and disability. Thankfully insurance companies now offer income protection insurance that covers you when you are unable to get back to work and produce an income. Learn how this plan could help you pay the bills even while seriously ill or injured.

Coverage

Income protection insurance covers 75% of your current salary in the event that you had an accident until you get back to work or retire. There are two terms on how you should be paid, short-term or long-term policies. Long-term protection allows you to have pay outs until you retire. While short-term policies would do pay outs for a maximum of 12 months until you are able to return to work. Therefore, long-term policies would give you a much higher level of protection but may also have higher premiums.

Protection

Your income is indeed your most valued asset that needs to be protected. This plan ensures your salary to be paid off while you are recovering from an accident or illness, or simply got out of job. Before buying and choosing a plan for you, learn how your company handles sick leaves and disability pay. This would then help you on how long can you survive until you receive your monthly benefit. The longer the deferred payment periods you choose, the lower the cost of the premiums.

Compare The Market

Although other policies might have gained popularity over the past years, this particular coverage is an ideal protection on your salary and life as well. Each company that sells these types of coverage has various deals and offers to attract you to buy from them. Sometimes, web comparison sites might confuse you on this issue and it's much better to consult the help of a financial advisor. They know the plans by heart and would help you choose the plan that fits your lifestyle.