Everyone takes a certain amount of risks every day. Depending on your job or your lifestyle, you may take more or fewer risks than the person next to you. Certain professions where you’re working around heavy machinery or in somewhat dangerous conditions can mean you’re more likely to suffer an injury. If you become disabled or can’t work for an extended period of time due to work-related or other injuries, your recovery won’t be the only thing you’re worried about. This can be an incredibly stressful time for your finances as well. Insurance
Your Guide to Income Protection Insurance
While it pays to have savings, that isn’t always possible when money is tight. And if you lose your source of income for a few weeks or months, that can throw off your entire financial situation. If you are living paycheck to paycheck, getting income protection could give you peace of mind that you’ll be taken care of in case of an accident or emergency. With income protection insurance, you will have options and support as you go through a confusing and rough time. Let’s take a look at what this insurance covers and why it can be a good fund for you to pay into.
What is income protection insurance?
While many individuals are familiar with the concept of insurance for your health, care, and home, you may not be as familiar with income protection insurance. This insurance coverage pays back up to 75% of your pre-taxed income if you are out of work for an extended period of time due to a disability. Each policy is going to look a little different and give you different monthly benefits. Some will only offer benefits for a total disability while others will give you benefits if you have a partial disability. This is a great option for individuals to cover their costs and continuing bills as they work to find new employment or recover from that injury or disability. Get peace of mind that you won’t have to worry about money as you’re going through that physically and mentally draining time.
Get a lump sum of money to use how you need.
One of the benefits of income protection insurance is how you can use your payout however you see fit. There aren’t restrictions on the funds you will get from your insurance company. If you need help affording rent or groceries, that would be the money to use. If you need a new futon mattress or furnishings for your home, you can use it for that as well. Chances are you are adapting to a new lifestyle, so you may need to invest in a sleeper sofa or durable mattress in your guest room for anyone who is coming in to help you recover. Feel free to use your money to help with whatever expenses you need.
Who benefits from this program the most?
While many people can benefit from income protection insurance, there are a few people who should consider investing more than others. If you are the breadwinner of your family or the sole earner of your household, you should consider paying into this insurance plan to give you a security blanket in case of an accident or emergency. This is a great choice to help you and your dependents maintain the lifestyle you’re used to even if you feel ill or get injured.
Don’t be worried about your finances as you recover.
hen you are recovering from an injury or illness, the added stress can be the worst thing for your overall health. Having income protection insurance means you can focus on your recovery instead of worrying about your finances. This is worth the small monthly payments to have that sense of security as you recover.