We all spend our lives working on our careers, building families, and solidifying the foundations of success and happiness. During this long and often challenging process, it is easy to overlook certain areas where we should be concerned.
Unfortunately, we never know what is going to happen next, so the best thing we can do is prepare. Today, we want to talk about Income protection insurance and how it can provide protection for you and your loved ones during unexpected and difficult times. With the right preparation, we can be prepared for anything, no matter what the future holds.
What Role Does Income Protection Insurance Play in Financial Stability
Successful financial planning should always include the unexpected. One of the most essential things we can do is protect the income we have worked so hard to acquire.
If an accident or illness prevents us from working at any point in the future, an income protection insurance policy can cover up to 70-75% of our income. This means we are guaranteed a regular income even during the most difficult times of our lives. Imagine never worrying about being short of an income – it’s hard to achieve peace of mind like that.
See also: Keys to Successful Office Productivity
How to Identify a Good Income Protection Policy
Though income protection insurance sounds incredible, like with any insurance policy, there are certain things to look out for to ensure your policy will do right by you.
Adjustable Benefit Period – This is how long you will receive the benefit. It is essential to have a flexible period to adjust as your circumstances change.
Adjustable Waiting Period – This is the time you wait before the benefit kicks in after an illness or accident prevents you from working. Again, you should be able to alter this throughout the policy to ensure it aligns with your current situation.
A Good Coverage Amount – Choose a policy with a coverage amount that aligns with your needs. If you have plenty of savings, a smaller amount will result in lower premiums, but if you don’t, find a policy that will cover enough to get you through difficult times.
Exclusions and Conditions – Always be careful of exclusions when taking out an income protection insurance policy. Carefully read the terms and ensure you understand what it does and doesn’t cover. If the terms and conditions don’t align with your lifestyle or line of work, choose a different provider.
The Risks of Not Investing in Income Protection
Of course, you may be sceptical of investing in income protection insurance. Maybe it seems too good to be true, or maybe you feel like you don’t need it, but if you can afford it, it is worth every cent. Without income protection insurance, there is always a risk of losing our income and not being able to keep up with debts, mortgage payments, rent, and other daily expenses. This is something that nobody needs to go through, and income protection is a simple way to do something about it.
