Most of us have one, two, or even three different sources of income just to meet our monthly obligations. Anyone who has financial obligations has to work hard to earn and save at the same time for unknown circumstances. In this case, when something happens that prevents you from working and earning, you should be prepared to protect your salary. Many insurance companies have developed a policy that would manage your monthly bills without worrying about the income source. Income protection insurance or IPI is here to loosen up your worries; it provides you the added security over a period of time.
If you can't cope financially while recovering from a serious illness or fatal accident you would surely miss the income you had that resulted to financial instability. You and your family would need to adjust to a different situation which would add stress and problems along the way. However, now you can plan ahead and consider consulting an agent to help you out in understanding the coverage further. As this would be an additional expense for you, go over of what might happen if you are already in a bad situation. As you research on how IPI works for you, it would make you realize that other health policies you have are not as good as this. In order for you to consider buying this kind of insurance, see these key points as shown below:
• You will receive a salary over a short or long period of time until you can get back to work or retire.
• The monthly earnings you will receive depend on your age, gender, salary, occupation, and medical history is optional for some companies.
• Make sure that the plan you choose is fully tax deductible, as some other companies might not offer this option.
• You would be able to receive benefits when you get back to work but in a reduced capacity and salary.
• It can pay up to 75% of your current monthly salary and would cover your illnesses, accidents, or major traumas.
• The waiting time would usually be from 14 days up to 2 years. The longer the waiting period, the higher the premiums you can get and could cover you until 65 or 70 years of age.
To better understand the policy properly, you need to consult a reliable insurance agent to get proper investment advice. As we are not experts on this field of work, we might want to leave it to them for there are different types of policies that can be tailored for us.