You take great care when deciding on your home insurance policy. Business insurance cover requires thorough research and consideration. And you may even hold insurance cover for your personal valuable items. Seems you’re fully protected. You may never have thought, however, about another vital area which could use some security: your income.
Your income is what keeps you and your family afloat. From month to month, you and your loved ones depend on a specific household income. On this you base your budget and planned expenses. You know what you can afford, how you will pay each of your bills, and even the quantity you intend to save.
What if the unexpected occurs and you are unable to earn an income for a significant period of time? In this case, a comprehensive income protection insurance policy can be a lifesaver.
How Does Income Protection Insurance Work
In the unfortunate event that you are beset with a serious illness or incur a significant injury, you will likely have to take time off of work to rest and recover. Certain ailments may even prevent you from being able to complete work-related tasks or duties. Yet you rely greatly on your income to help you maintain your comfortable and healthy lifestyle. This is where income protection insurance saves the day. In most cases covering up to 85% of your total annual income, this insurance gives you the peace of mind that you and your family will be provided for if the unexpected should occur. Meeting your financial obligations and staying on track for your future will help you immensely during a challenging time.
When selecting your income protection insurance, there are many factors to examine. Although you cannot predict how long an injury or illness might set you back, you can consider your personal financial situation. How much do you have in the bank? What are your other assets? Though no one envisages a long term absence from work, it’s worth deciphering whether you have the basic financial stability to meet your needs if such circumstances arise. This will assist you in selecting an income protection policy that has the right length of cover. Some policies offer longer periods of protection than others. Taking into account your own state of health is also wise, as individuals with existing health concerns may require additional time to recover from a debilitating illness or injury.
Policies vary in other ways. Some allow you to include or add your spouse to the insurance plan or incorporate plans that can offer specific benefits to your dependents. Still other insurance providers offer the option of redundancy cover, which can support you during months of involuntary employment.
Your Next Steps
Because income protection insurance policies can be so complex, it is highly advisable to work with an insurance broker to obtain coverage. At Macey’s, our team of experienced professional brokers is equipped to help you sort through the myriad of options and consider the plan that is best for your needs all around. Curious about income protection insurance or other cover? Get in touch with us today to start the straightforward process with a broker.