Having a family to take care of entails a huge responsibility. You go to work every day to earn income and to make sure that your family’s needs are met. However, it is important to note that even if you take good care of your health, sickness can strike you from anywhere. The moment you get sick you become too weak to go to work.
You spend days at home or at the hospital to rest, recover and get treatment. All the while, the bills are mounting but you cannot generate income because you cannot go to work. How can you survive? How can you continue to support your growing family? The best solution for that would be to purchase income protection insurance.
You might be more familiar with other terms like permanent health insurance or long-term disability insurance but these two products refer to the same thing that is now more commonly known as income protection insurance. The primary purpose of this plan is to make sure that you have continued income even if you cannot go to work because you fell ill or you met an accident and sustained serious injuries.
- It functions to replace a part of your income if you cannot report to work due to a serious illness or injury.
- It continues to give you pay outs up until such time that you can go back to work. It can also be designed to continue giving you pay-outs until you retire or upon the termination of the plan whichever comes first.
- The plan allows you to set payments so that you will start receiving pay-outs after your sick pay from your company ends or the moment that any other insurance company stops providing you with the coverage that you need. The longer you wait for pay outs to start, the lower the premiums.
Income protection is different from critical illness coverage in the sense that it is not designed to give you a one-time lump sum cash benefit when you get diagnosed with a serious illness. Instead, it pays a certain percentage of your salary. You get to decide the percentage but most people choose to set it 50% of their salary or a little over 50%. The great thing about it is that you can claim as many times as you need to as long as the policy is still in force.
It is also different from a short-term income protection plan. Although both plans are designed to give you monthly pay outs based on how much you earn, a short-term income protection plan only covers you for a limited period of time. These plans usually stay in force for only 2 to 5 years and cover fewer illnesses or emergency situations.
It practically covers all illnesses that hinders from you from performing your duties and responsibilities at work. You can choose from different types of income protection plans. Some plans cover you for illnesses that render you “unable to work at your current job” perhaps because of work-related anxiety. Some plans are more extensive that it covers you for illnesses that render you “unable to work at all” probably due to a major injury on your limbs or due to a serious life-threatening disease.
Whether you are a single, married without children, or married with children, some form of income protection insurance is important. This plan basically answers a simple question. Who pays the bills if you become too ill to go work? If you are self-employed or if you are employed and your company does not give you the benefit of a sick pay, then this plan is essential to make sure that you are prepared for life’s unexpected health issues.
It is easy to get an income protection quote online through us. We utilise a unique comparison tool. This way, we can provide you with a plan that suits your specific needs as well as your budget.
Getting the right amount of protection at the right time is extremely important. Do not wait until something serious happens to you. Simply call us today or chat with us through our website and we will point you towards the right direction.