Getting ready, going to the office, coming home to the family is what we all do every day. Such is the impact of work on everyday life that we rarely think of a single day without work. However there can be occasions when you are unable to work for three or maybe six months. In such a situation, your normal sick pay will run out. What can you do for income? If you had been smart enough to get income protection insurance you would not have to worry about anything.
What Is Income Protection Insurance And Why Do You Need It?
Income protection insurance protects you when you are unable to work due to sickness or injury. The policy will pay out till you can get back to work, retirement or end of lifespan. Thus, it provides financial protection for you and your family during troubled times. Although employers offer support to their staff if they are sick, it lasts for only a year. After that they have to find some other means of financial support and this is where having Income Protection Insurance proves to be beneficial. In today's fast-paced world with so many risks, is advisable for any person in a working age to have it.
It protects you during unemployed days with a payout that helps maintain your lifestyle. The amount obtained from it is 50% to 70% of the normal income. It can be used to pay for mortgage, household and other essential expenses, so that loss of income does not affect life. It gives security for you and your loved ones under difficult circumstances. The payout received is not subject to taxation. Getting coverage will not take time because no medical tests have to be undertaken. You have to answer some questions asked by the company and sign up the policy.
The payout starts after a period of time, which is agreed upon by you and the insurance company. It can be anything between one to twelve months. If you choose a longer deferral period, the premium rate will be low. Making a claim is easy because all you have to do is call the insurance company to find out what documents to provide for the claim to be processed. Submit them and the payment starts after the deferral period is over. This insurance can also be taken by people who run a business. If sickness or injury prevails them from running it money it helps to cover expenses.
Different Types Of Income Protection Insurance
Income protection insurance is available in many forms. There is a long-term policy which pays out till work, retirement or end of lifespan. This is the regular type and what many people opt. You can also consider a short term policy in which the payout is for a period of one to five years. If you are looking for something cheap, check out the ASU or Accident, Sickness and Unemployment coverage. In this policy money is paid only under …