Saturday, December 17, 2011

Reasons for Income Protection

Nobody can be sure of the future. Everything seems to be going smooth in your family and everybody is happily leading a peaceful life. Everybody is ready to go out to attend some function or some movie and are waiting for your parent, the breadwinner in the family. The rest of the family is around when the door bell rings and you find a few elderly men near the door. The news they have come up with has completely shattered all of you. Your parent had met with a serious accident and is admitted in a hospital. He has been advised not to move for 6 months due to heavy injuries. Everybody is dumbfounded. When a friend had advised your parent to go in and buy a insurance policy, he had laughed it off saying he has taken a life insurance which will help the family in case he dies. But here the friend was talking about income protection insurance which has been framed for such cases. The benefits of income protection and how it affects the family are as follows:

Firstly, when a person buys this insurance, they are covered to get 75 % of their monthly salary. This money is given in the event of illness or serious injury due to which that person is unable to attend office. The biggest advantage here is your lifestyle continues the way it was and you need not worry about how the house will run and how will the expenses be taken care? Income protection takes the place of the insured and meets all the expenses like loan repayments, instalments, club bills and all household expenses. The insured gets the necessary peace of mind and support to recover speedily.

Secondly, when you are unable to work, and your regular income is slowly stopped, there are possibilities of a time coming soon when you are unable to pay your mortgages and soon would have to sell your investments and stocks. When buying the income protection plan, usually all the monthly expenses too are calculated and covered so that the house runs smoothly.

Thirdly, due to the sickness or injury, if you are out of work for 6 months or more, do you think you and your family could survive without any income? For safer side buying insurance like life insurance is useful for the dependants in case of your death. The income protection is different. Like the words mean it protects your income in case of your disability to work. When one buys this insurance, he is covered during any major illness. The insurance pays all your monthly bills and your medicines too.

Fourthly, though the Governments give certain benefits towards your illness and injury, it would not be sufficient to take care of all the expenses. The benefits too are conditional and no family can survive on that. Buying insurance is a necessity especially when you have other people depending on you.

Finally, if you have children depending on your income, their schooling would get disrupted because of your sickness or injury. But if you are covered with insurance, you can be assured that the children can still go to school and continue their studies.

Thus income protection is a necessity for any family and is the breadwinner when your parent gets injured or falls sick. Any type of insurance is a worthwhile investment.

By: Diana Nicolus
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  1. I agree with your opinion and thanks for your comment here

  2. Having an income protection cover is certainly important these days. You may frown at the monthly premium payments but at least you can be sure that your family's financial security won't be compromised in the event that you can't work due to sickness or accidental injury.